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ME 482 - Manufacturing Systems

WIP inventory cost analysis

Equations:

avg batch operation cycle time Ta = Tsu + Q Tc + Tno

MLT(batch process)MLT = no Ta

cost per operationCok = Co Tpk + Cnok

total cost after all operationsCpc = Cm + k Cok        ( k = 1, .. no)

total cost after all operations*Cpc = Cm + no ( Co Tp + Cno )

* assuming Tpk and Cnok are the same for each operation

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