Podcast
Questions and Answers
What does a negative buildup rate at a given hour indicate?
What does a negative buildup rate at a given hour indicate?
- Production exceeded demand.
- Production and demand were equal.
- There was no production during that hour.
- Demand exceeded production. (correct)
A buildup rate of 0 always implies that production has stopped.
A buildup rate of 0 always implies that production has stopped.
False (B)
Using the formula $\Delta R(t) = R_i(t) - R_o(t)$, where $\Delta R(t)$ is the buildup rate, $R_i(t)$ is the input rate, and $R_o(t)$ is the output rate, explain how the buildup rate is determined.
Using the formula $\Delta R(t) = R_i(t) - R_o(t)$, where $\Delta R(t)$ is the buildup rate, $R_i(t)$ is the input rate, and $R_o(t)$ is the output rate, explain how the buildup rate is determined.
The buildup rate is determined by subtracting the output rate ($R_o(t)$) from the input rate ($R_i(t)$).
If the production rate is 50 units/hr and the demand is 75 units/hr, the buildup rate is ________ units/hr.
If the production rate is 50 units/hr and the demand is 75 units/hr, the buildup rate is ________ units/hr.
Match the following time intervals with their corresponding buildup rates:
Match the following time intervals with their corresponding buildup rates:
At what time interval does the inventory buildup rate experience the most significant decrease?
At what time interval does the inventory buildup rate experience the most significant decrease?
If the production rate remains constant while the demand increases, the buildup rate will increase.
If the production rate remains constant while the demand increases, the buildup rate will increase.
Explain the significance of determining the instantaneous buildup rate in inventory management.
Explain the significance of determining the instantaneous buildup rate in inventory management.
If at 11am the production of cookies is 100/hr and the demand is 0/hr, the ending inventory, assuming the starting inventory is 0 will be ________ cookies.
If at 11am the production of cookies is 100/hr and the demand is 0/hr, the ending inventory, assuming the starting inventory is 0 will be ________ cookies.
Match the terms with their definitions:
Match the terms with their definitions:
Which of the following statements is true concerning the buildup rate?
Which of the following statements is true concerning the buildup rate?
If the buildup rate is positive, the ending inventory will always be the same as the starting inventory.
If the buildup rate is positive, the ending inventory will always be the same as the starting inventory.
Explain how businesses can use buildup rate data to optimize their production planning.
Explain how businesses can use buildup rate data to optimize their production planning.
If the production is 0 cookies/hr and the demand 75 cookies/hr, then the total inventory would decrease by ____ cookies after the 1-hr interval.
If the production is 0 cookies/hr and the demand 75 cookies/hr, then the total inventory would decrease by ____ cookies after the 1-hr interval.
Match the scenarios with their corresponding buildup rates:
Match the scenarios with their corresponding buildup rates:
During which time interval is the production rate the highest while the demand rate is also the highest?
During which time interval is the production rate the highest while the demand rate is also the highest?
The instantaneous buildup rate can only be calculated at the beginning of each time interval.
The instantaneous buildup rate can only be calculated at the beginning of each time interval.
How does an understanding of buildup rates contribute to better supply chain management?
How does an understanding of buildup rates contribute to better supply chain management?
When using the formula, $\Delta R(t) = R_i(t) - R_o(t)$, $\Delta R(t)$ represents the ______.
When using the formula, $\Delta R(t) = R_i(t) - R_o(t)$, $\Delta R(t)$ represents the ______.
Match each time with their corresponding ending inventory:
Match each time with their corresponding ending inventory:
Flashcards
Buildup Rate (ΔR)
Buildup Rate (ΔR)
The rate at which inventory increases or decreases, calculated as production minus demand.
Production Rate
Production Rate
The amount of product made within an hour.
Demand Rate
Demand Rate
The quantity of items requested or purchased by customers.
Ending Inventory
Ending Inventory
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Instantaneous Buildup Rate Formula
Instantaneous Buildup Rate Formula
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Buildup Rate Equation
Buildup Rate Equation
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Study Notes
Inventory Buildup Diagram - Buildup Rate
- Production rate is measured in cookies per hour.
- Demand rate is measured in cookies per hour.
- The buildup rate (ΔR) is measured in cookies per hour.
- The ending inventory is measured in cookies.
Buildup Rate Example
- At 11am:
- Production: 100 cookies/hr
- Demand: 0 cookies/hr
- Buildup Rate (ΔR): 100 cookies/hr
- Ending Inventory: 100 cookies
- At 12pm:
- Production: 100 cookies/hr
- Demand: 50 cookies/hr
- Buildup Rate (ΔR): 50 cookies/hr
- Ending Inventory: 150 cookies
- At 1pm:
- Production: 100 cookies/hr
- Demand: 125 cookies/hr
- Buildup Rate (ΔR): -25 cookies/hr
- Ending Inventory: 125 cookies
- At 2pm:
- Production: 100 cookies/hr
- Demand: 150 cookies/hr
- Buildup Rate (ΔR): -50 cookies/hr
- Ending Inventory: 75 cookies
- At 3pm:
- Production: 0 cookies/hr
- Demand: 75 cookies/hr
- Buildup Rate (ΔR): -75 cookies/hr
- Ending Inventory: 0 cookies
Instantaneous Buildup Rate
- Calculated by the formula: ΔR(t) = Ri(t) – Ro(t)
- ΔR(t) - Buildup Rate
- Rᵢ(t) - Production Rate
- R₀(t) - Demand Rate
- Example at 1pm: ΔR(1pm) = Ri(1pm) – Ro(1pm) = 100 – 125 = -25 cookies/hr
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