Eventhough i don't know about half of what you said, i really appreciate this video it helps me with my homework, i really cant understand mrp with online class :( Thank you so much.
Thank you for watching! I will try my best to put subtitles on my videos for my non-Filipino viewers. You may send me an inquiry through my email if you have further questions. Will be happy to help!
Hello Tasha, you’ll need to align the costs based on the planning period. If planning period is in weeks, your carrying cost should be in weeks as well :)
Only one concern. Total cost in the EOQ method, didn't require for me to calculate number of orders. I already have Q, D, H, and S values. I only obtained number of orders from the EOQ method, but it didnt get used in the final total cost calculation. Please help?
Hello! We use the same formula for total cost calculation for EOQ. The only difference is we will calculate for the applicable planning period only. If your planning duration is in weeks, say 15 weeks, we will divide the total annual cost by 52 weeks to get the weekly average cost, then multiply it by 15. If your planning duration is in months, we divide the total annual cost by 12, and multiply it with the total number of months of the planning period.
This happens very unusually. But in cases EOQ is less than the maximum gross requirement, EOQ may not be applicable to consider as a lot sizing technique. You may opt to evaluate lot for lot or PPB; there are also OR techniques that you can apply, such as Wagner-Whitin method.
Hey! How come you do not calculate the average demand in EOQ from the Net Requirements in lot-for-lot? But instead you used gross requirements? Thanks!!
Hello! Average demand is based on the average of the gross requirements, which is the actual units needed for each planning period. On hand inventory can vary based on the previous production, affecting how the net requirements will be for a specific planning period. You can read more about using EOQ in lot sizing techniques in Heizer and Render’s book of Operations Management :)
@@EzrhaGodilano I'm currently working on a question where I am already aware of the inventory on hand so in this instance would I use the net requirements instead? Thanks for your reply!!!
Hello! Yes, to get the demand for your EOQ formulation, just get the total demand then divide by the total number of weeks in the current planning period.
Bhekumuzi Montjane Hello! Just copy and paste it on the recipient field. You may also see my email address in the description box of the video and my “About” part in my profile.
Hai really apreciate your video. But i would like to ask you something abit off from this topic. The question is about Least Total Cost (LTC). I realize in my calculation that they produce the same planning order as PPB. The Lotsizing method is also basicly the same. So what's the difference?
Hello! Thank you for watching! There are cases that the least cost for all techniques could be the same, it means you have multiple feasible solutions. The next thing you have to weigh are the other factors that could contribute to overall cost, like availability of materials, capacity, and manpower :)
Hi mam.It was a wonderful video..made me understand the concept easily.If I have any doubt regarding this topic or topics related to this how can I contact you?
Hello! Glad I could help. You can contact me through my gmail or messenger if you have questions. I posted my details in the About section on my channel. You may also find the details in the description under the video :)
Hello! If your inventory>gross requirement, the difference will be carried over to the next period as your projected on-hand inventory. You’ll only have a value in the net requirement cell if your gross>inventory. :)
So to answer your question, if your beginning inventory is 40, and gross requirement is 30 on Period 1, nothing will be written on the net requirement cell. The difference of 10 will be your projected on-hand for Period 2.
Ezrha Godilano thanks for your response... And if I have 0 at the gross requirements of period 2, that 10 that is on hand, it counts as an holding cost since I won’t use that quantity in that period? And if that’s the case, should I multiply (1 unit x holding cost)?
It depends on the technique you’re using. For EOQ and PPB, the holding cost is already considered in the computation of the total cost. Lot-for-lot on the other hand, usually has no more than 1 period with no gross requirement, and aims to have zero holding cost and only counts the number of orders then multiplied with the ordering cost. In the end, you have to evaluate which among these techniques will yield the least cost.
@@shahidanrejab6002 Stock out cost is a cost incurred when there is no enough stock to offer the customer. This is why we calculate for the optimal safety stock level to carry to avoid too much cost. I hope this answers your question :)
Sherina Helmyza Hello! Thank you for watching my video. In this video, I discussed the three lot-sizing techniques based on Operations Management textbook by Hazer and Render :)
Eventhough i don't know about half of what you said, i really appreciate this video it helps me with my homework, i really cant understand mrp with online class :( Thank you so much.
Thank you for watching! I will try my best to put subtitles on my videos for my non-Filipino viewers. You may send me an inquiry through my email if you have further questions. Will be happy to help!
Thank you for a wonderful video, even though I don't understand your language I was still able to follow it to some extent. Good one
Maam which book are you using as refrence?
Hello! It’s Operations Management by Jay Heizer and Render.
is part period balancing is same to fixed period order?
In EOQ, if the carrying cost is given per year but you have a planning period of 7 weeks. Would you need to divide the carrying cost into weeks?
Hello Tasha, you’ll need to align the costs based on the planning period.
If planning period is in weeks, your carrying cost should be in weeks as well :)
Only one concern. Total cost in the EOQ method, didn't require for me to calculate number of orders. I already have Q, D, H, and S values. I only obtained number of orders from the EOQ method, but it didnt get used in the final total cost calculation. Please help?
Hello! We use the same formula for total cost calculation for EOQ. The only difference is we will calculate for the applicable planning period only. If your planning duration is in weeks, say 15 weeks, we will divide the total annual cost by 52 weeks to get the weekly average cost, then multiply it by 15. If your planning duration is in months, we divide the total annual cost by 12, and multiply it with the total number of months of the planning period.
What if the EOQ is less than the gross/net requirement and there is stock out cost?
This happens very unusually. But in cases EOQ is less than the maximum gross requirement, EOQ may not be applicable to consider as a lot sizing technique. You may opt to evaluate lot for lot or PPB; there are also OR techniques that you can apply, such as Wagner-Whitin method.
Hey! How come you do not calculate the average demand in EOQ from the Net Requirements in lot-for-lot? But instead you used gross requirements? Thanks!!
Hello! Average demand is based on the average of the gross requirements, which is the actual units needed for each planning period. On hand inventory can vary based on the previous production, affecting how the net requirements will be for a specific planning period. You can read more about using EOQ in lot sizing techniques in Heizer and Render’s book of Operations Management :)
@@EzrhaGodilano I'm currently working on a question where I am already aware of the inventory on hand so in this instance would I use the net requirements instead? Thanks for your reply!!!
Average gross requirements should still be used to determine average demand :)
So do I have to divide by total number of weeks when I want Demand?
Hello! Yes, to get the demand for your EOQ formulation, just get the total demand then divide by the total number of weeks in the current planning period.
@@EzrhaGodilano thank you mam, whr can I get your email address
You may email me at ezrha.godilano@gmail.com for further inquiries :)
@@EzrhaGodilano the email address its not working
Bhekumuzi Montjane Hello! Just copy and paste it on the recipient field. You may also see my email address in the description box of the video and my “About” part in my profile.
Hai really apreciate your video. But i would like to ask you something abit off from this topic. The question is about Least Total Cost (LTC). I realize in my calculation that they produce the same planning order as PPB. The Lotsizing method is also basicly the same. So what's the difference?
Hello! Thank you for watching! There are cases that the least cost for all techniques could be the same, it means you have multiple feasible solutions. The next thing you have to weigh are the other factors that could contribute to overall cost, like availability of materials, capacity, and manpower :)
Can u help me with a problem that i am not been able to solve of EOQ.
communicating sources email
Sure, just send me an email. :)
Hi mam.It was a wonderful video..made me understand the concept easily.If I have any doubt regarding this topic or topics related to this how can I contact you?
Hello! Glad I could help. You can contact me through my gmail or messenger if you have questions. I posted my details in the About section on my channel. You may also find the details in the description under the video :)
What if I have 30 in gross requirements and a beginning inventory of 40, what I should put in net requirement? Thank you in advance
Hello! If your inventory>gross requirement, the difference will be carried over to the next period as your projected on-hand inventory. You’ll only have a value in the net requirement cell if your gross>inventory. :)
So to answer your question, if your beginning inventory is 40, and gross requirement is 30 on Period 1, nothing will be written on the net requirement cell. The difference of 10 will be your projected on-hand for Period 2.
Ezrha Godilano thanks for your response... And if I have 0 at the gross requirements of period 2, that 10 that is on hand, it counts as an holding cost since I won’t use that quantity in that period? And if that’s the case, should I multiply (1 unit x holding cost)?
It depends on the technique you’re using. For EOQ and PPB, the holding cost is already considered in the computation of the total cost. Lot-for-lot on the other hand, usually has no more than 1 period with no gross requirement, and aims to have zero holding cost and only counts the number of orders then multiplied with the ordering cost. In the end, you have to evaluate which among these techniques will yield the least cost.
Ezrha Godilano I understand, thank you so much for your time.
if the question give stock out cost, what is the function that cost?
Hello! I don’t seem to understand your question. Kindly elaborate, please :)
@@EzrhaGodilano i just want to know the function of stock out cost when we do the exercise (if the question give the stock out cost)
@@shahidanrejab6002 Stock out cost is a cost incurred when there is no enough stock to offer the customer. This is why we calculate for the optimal safety stock level to carry to avoid too much cost. I hope this answers your question :)
@@EzrhaGodilano yeah, i get it. Tq for ur explanation 😊
where does the 80 come from
Hello! From what part of the video?
@@EzrhaGodilano from the EOQ
I don't understand the equation and where the values come from
You did not add the inventory carrying cost.
Hello! May I know what model you were referring to?
Request po sana ako'' ifmay topic po ba kau bg activities relationship diagram?? Facilities po
Yes I have. will probably upload it this week.
Thank you so much ❤❤
THANK YOU MA'AM
PRIYASAI you’re welcome!
I think it's not ppb method, but just epp
Sherina Helmyza Hello! Thank you for watching my video. In this video, I discussed the three lot-sizing techniques based on Operations Management textbook by Hazer and Render :)
even i think that its not ppb
Hello you there?
It helps alot
You’re welcome! Thank you for watching!
Do you speak English?! I don't understand what you say when you switch to strange language
Ok tnx po
ur english is just impossible to understand