Question

Relationship between run time, set up time, lot size and on hand on operations management??

How to make forecasting model by using number of weeks, forect and customer orders??

Answer 1

Run time is usually the time between the program starts running until it is closed by the operator. It is also known as the execution time.

Set up time is defined as the time taken to make a device ready to function or accept a job.

Lot size can be defined as the total quantity of the product that has been ordered for the purpose of manufacturing.

On hand can be defined as the quantity that is actually available.

Relationship between the above concepts:

All the above usually take place in a sequence. In the lot size, we usually place order for the materials for using it in manufacture. When we place the order, we decide on the quantity to be ordered depending on the availability in hand. This is on hand comes into picture. We consider the quantity on hand for deciding the amount to be ordered in order to avoid wastage.

After buying the quantity required for manufacturing, set up time is the next step in the sequence. In this step, we make ready the machine in order to start the production process. This can include assembling the required parts or accepting a new job if we are idles. Run time comes next. Here we execute the job after following all the previous steps. The operator starts with production process and continues the job until it is fully completed.

For the second part of the question, not sure with the answer, not able to get relevant answer from any of the sources.