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ME 482 - Manufacturing Systems

WIP inventory cost analysis - terms

Cm – material cost

Tp – average production time (setup plus operation time)

Tpk – production time for process k (setup plus operation time)

Tsu – average machine setup time for a batch process

Tno – average non-operation time for a machine

Tc – average operation cycle time for a machine

Ta – average operation cycle time for a machine including setup and      non-operation times

Q – average batch quantity for batches of parts being processed

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