MGCR 472 Lecture 1: MGCR472, lecture 1 note
Document Summary
A series of independent activities that turn an input into an output of higher value. Can be defined at an aggregate or micro level. Flow rate (r) : the number of units that flow through the process per unit of time. Flow time (t) : the average amount of time that a unit spends in the process (active + waiting) The number of times a store depletes its inventory. It = (r/i) = (1/t) or it = (cogs)/(inventory) Per unit cost of inventory = (annual inventory cost)/(inventory turns) Average inventory accumulation = 0: average inventory is positive. Calculating revenue/average price (price of good a)(% of total goods that good a represents) (price of good b)(% of total goods that good b represents) If there are 2 variables (ex: 2 types of travellers) Inventory on any given day is the sum of the average number of each type of variable that is on average present daily.
