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How to Calculate Lot Sizes Presentation
“How the Calculate Lot Sizes” explains how most companies calculate lot sizes, why this calculation is invalid in the majority of real-world situations and how to go about calculating lot sizes the right way and improve flow.
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Topics covered are as follows:
- The importance of lot sizing decisions and how they are calculated in MRP/ERP systems
- The Economic Order Quantity (EOQ) model and assumptions
- The Economic Manufacturing Quantity (EMQ) model and assumptions
- Why multiple parts make the EMQ model invalid
- Multiple parts and the Economic Lot Scheduling Problem (ELSP)
- Why science cannot provide the “optimal lot size” - implications of NP Hard problems
- Analytical and stochastic approaches to solving the ELSP
- Other ESLP assumptions that don’t hold in the real world
- ELSP implications – what can we learn?
- Practical solutions and the “10% Rule”
- How to calculate lot sizes (using the spreadsheet supplied)
- Solution evaluation, complications, issues and solutions
- How this calculation applies to the physical system
- Other considerations
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