Total Optimum Cost for Manufacturing Model Calculator

✖Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year.ⓘ Demand per Year [D]			+10% -10%
✖Carrying Cost is the total of all expenses related to storing unsold goods, and refers to the total cost of holding inventory.ⓘ Carrying Cost [C_c]			+10% -10%
✖Order Cost is the expenses incurred to create and process an order to a supplier.ⓘ Order Cost [C₀]			+10% -10%
✖Production Rate refers to the number of goods that can be produced during a given period of time.ⓘ Production Rate [K]			+10% -10%

✖The Total Optimum Cost for Manufacturing Model is the sum of the inventory and the order cost.ⓘ Total Optimum Cost for Manufacturing Model [TOC_m]

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Total Optimum Cost for Manufacturing Model Solution

STEP 0: Pre-Calculation Summary

Formula Used

Total Optimum Cost for Manufacturing Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*(1-Demand per Year/Production Rate))
TOC_m = sqrt(2*D*C_c*C₀*(1-D/K))
This formula uses 1 Functions, 5 Variables

Functions Used

sqrt - A square root function is a function that takes a non-negative number as an input and returns the square root of the given input number., sqrt(Number)

Variables Used

Total Optimum Cost for Manufacturing Model - The Total Optimum Cost for Manufacturing Model is the sum of the inventory and the order cost.
Demand per Year - Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year.
Carrying Cost - Carrying Cost is the total of all expenses related to storing unsold goods, and refers to the total cost of holding inventory.
Order Cost - Order Cost is the expenses incurred to create and process an order to a supplier.
Production Rate - Production Rate refers to the number of goods that can be produced during a given period of time.

STEP 1: Convert Input(s) to Base Unit

Demand per Year: 10000 --> No Conversion Required
Carrying Cost: 4 --> No Conversion Required
Order Cost: 200 --> No Conversion Required
Production Rate: 20000 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

TOC_m = sqrt(2*D*C_c*C₀*(1-D/K)) --> sqrt(2*10000*4*200*(1-10000/20000))

Evaluating ... ...

TOC_m = 2828.42712474619

STEP 3: Convert Result to Output's Unit

2828.42712474619 --> No Conversion Required

FINAL ANSWER

2828.42712474619 ≈ 2828.427 <-- Total Optimum Cost for Manufacturing Model

(Calculation completed in 00.020 seconds)

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Created by Suman Ray Pramanik

Indian Institute of Technology (IIT), Kanpur

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< Manufacturing and Purchase Model Calculators

EOQ Manufacturing Model with Shortage

LaTeX Go EOQ Manufacturing Model with Shortage = sqrt(2*Demand per Year*Order Cost*(Shortage Cost+Carrying Cost)/(Carrying Cost*Shortage Cost*(1-Demand per Year/Production Rate)))

Maximum Stock Out Manufacturing Model

LaTeX Go Maximum Stock out Manufacturing Model = sqrt(2*Demand per Year*Order Cost*Shortage Cost*(1-Demand per Year/Production Rate)/(Carrying Cost*(Carrying Cost+Shortage Cost)))

EOQ Manufacturing Model with No Shortage

LaTeX Go EOQ Manufacturing Model No Shortage = sqrt((2*Order Cost*Demand per Year)/(Carrying Cost*(1-Demand per Year/Production Rate)))

EOQ Purchase Model with No Shortage

LaTeX Go EOQ Purchase Model No Shortage = sqrt(2*Demand per Year*Order Cost/Carrying Cost)

Total Optimum Cost for Manufacturing Model Formula

LaTeX Go

Total Optimum Cost for Manufacturing Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*(1-Demand per Year/Production Rate))
TOC_m = sqrt(2*D*C_c*C₀*(1-D/K))

What is total optimum cost for the manufacturing model?

The total optimum cost for the manufacturing model is the sum of the inventory and the order cost. It is the cost incurred in the total functioning of the supply chain right from placing the order to executing it.

How to Calculate Total Optimum Cost for Manufacturing Model?

Total Optimum Cost for Manufacturing Model calculator uses Total Optimum Cost for Manufacturing Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*(1-Demand per Year/Production Rate)) to calculate the Total Optimum Cost for Manufacturing Model, The total optimum cost for manufacturing model is the sum of the inventory and the order cost. It is the actual cost incurred in the production of a given level of output. Total Optimum Cost for Manufacturing Model is denoted by TOC_m symbol.

How to calculate Total Optimum Cost for Manufacturing Model using this online calculator? To use this online calculator for Total Optimum Cost for Manufacturing Model, enter Demand per Year (D), Carrying Cost (C_c), Order Cost (C₀) & Production Rate (K) and hit the calculate button. Here is how the Total Optimum Cost for Manufacturing Model calculation can be explained with given input values -> 2828.427 = sqrt(2*10000*4*200*(1-10000/20000)).

FAQ

What is Total Optimum Cost for Manufacturing Model?

The total optimum cost for manufacturing model is the sum of the inventory and the order cost. It is the actual cost incurred in the production of a given level of output and is represented as TOC_m = sqrt(2*D*C_c*C₀*(1-D/K)) or Total Optimum Cost for Manufacturing Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*(1-Demand per Year/Production Rate)). Demand per Year is the number of goods that consumers are willing and able to purchase at various prices during a given year, Carrying Cost is the total of all expenses related to storing unsold goods, and refers to the total cost of holding inventory, Order Cost is the expenses incurred to create and process an order to a supplier & Production Rate refers to the number of goods that can be produced during a given period of time.

How to calculate Total Optimum Cost for Manufacturing Model?

The total optimum cost for manufacturing model is the sum of the inventory and the order cost. It is the actual cost incurred in the production of a given level of output is calculated using Total Optimum Cost for Manufacturing Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*(1-Demand per Year/Production Rate)). To calculate Total Optimum Cost for Manufacturing Model, you need Demand per Year (D), Carrying Cost (C_c), Order Cost (C₀) & Production Rate (K). With our tool, you need to enter the respective value for Demand per Year, Carrying Cost, Order Cost & Production Rate and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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