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Production Order Quantity (POQ) is a model that answers how much to produce and when to order. In this model, the materials produced are used immediately and hence lowering the holding cost that in Economic Order Quantity (EOQ).
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What is the difference between production inventory quantity and economic order quantity?
EOQ Model - Only one product is involved - Annual demand requirements known - Demand is even throughout the year - Lead time does not vary - Each order is received in a single delivery - No quantity discounts - Stockouts can be completely avoided POQ Model - Only one item is involved - Annual demand is known - Usage rate is constant - Usage occurs continually - Production rate is constant - Lead time does not vary - No quantity discounts - Production can be done in batches or lots (capacity to produce a part exceeds the part's usage or demand rate) - Suited for production environment (material produced, used immediately. Provides production lot size) - Lower holding cost than EOQ model
What is the purpose of entering the pick quantity for each material on the order?
Verification that the quantity of materials in the shipment match the quantity on the order
Does the production possibilities curve slope downward?
Yes, production possibility curve slopes downwards to the right indicating that the economy has to forgo some quantity of one commodity to have more quantity of other commodity.
What is price determinant?
The price determinates are the factors that will determine the price of a particular commodity, These factors are quantity supplied, quantity demanded and the cost of production.
What are the criticisms of economic quantity approach?
what are the economic criticisms of quantity order approach
What is the difference between production order quantity and economic order quantity?
EOQ Model - Only one product is involved - Annual demand requirements known - Demand is even throughout the year - Lead time does not vary - Each order is received in a single delivery - No quantity discounts - Stockouts can be completely avoided POQ Model - Only one item is involved - Annual demand is known - Usage rate is constant - Usage occurs continually - Production rate is constant - Lead time does not vary - No quantity discounts - Production can be done in batches or lots (capacity to produce a part exceeds the part's usage or demand rate) - Suited for production environment (material produced, used immediately. Provides production lot size) - Lower holding cost than EOQ model
What two pieces of information are needed to confirm a production order?
Production Order Number, Quantity of Finished Goods Produced
What is the difference between production inventory quantity and economic order quantity?
EOQ Model - Only one product is involved - Annual demand requirements known - Demand is even throughout the year - Lead time does not vary - Each order is received in a single delivery - No quantity discounts - Stockouts can be completely avoided POQ Model - Only one item is involved - Annual demand is known - Usage rate is constant - Usage occurs continually - Production rate is constant - Lead time does not vary - No quantity discounts - Production can be done in batches or lots (capacity to produce a part exceeds the part's usage or demand rate) - Suited for production environment (material produced, used immediately. Provides production lot size) - Lower holding cost than EOQ model
How HRM department link with Production department?
The order of quantity link them.
What information is needed to issue materials to a production order?
Material Number Quantity Storage Location
Sanitation in quantity and institutional food production?
sanitation in quantity and institutionalfood production
What is food quantity production?
Quantity food production is the amount of food you consume each day.
What are the most common problems in quantity food production?
The biggest problem that occurs with quantity food production is the loss of Quality.
Explain the assumptions of the Basic Economic Order Quantity EOQ model?
As the name suggests, Economic order quantity (EOQ) modelis the method that provides the company with an order quantity. This order quantity figure is where the record holding costs and ordering costs are minimized. By using this model, the companies can minimize the costs associated with the ordering and inventory holding. In 1913, Ford W. Harris developed this formula whereas R. H. Wilson is given credit for the application and in-depth analysis on this model.Dr.Abbas Albarq
What is Production optimization?
production optimization is increasing the quality&quantity of products
What is the average inventory in the EOQ model equal to?
the order quantity divided by the number of inventory cycles per year
How does Economic order quantity differ from economic production quantity?
Economic Order Quantity (EOQ): in this method, our interest is on the raw material that we are going to use in the production. However, we need to do the EOQ method for each kind of raw material, if the product needs multiple material to be manufactured. Usually, this type of analysis is one shot method, because the period we are planing to order for is long (the assumption is that the period is non-ending). As for Economic Production Quantity (EPQ): The concentration is one the final product , which has been manufactured in the plant. This analysis is done once just like EOQ. A company could have more than one product that is when we do this method for each product. Here we assume that the production rate is greater than the demand rate. in this case we will need to manufacture the product for a certain period (production uptime). Then we stop the production (production shutdown) until the next uptime, which should be around the time where the inventory is near finishing. For the case where the demand is greater than the production you just produce the maximum amount you can.
