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))
TOCm = sqrt(2*D*Cc*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
TOCm = sqrt(2*D*Cc*C0*(1-D/K)) --> sqrt(2*10000*4*200*(1-10000/20000))
Evaluating ... ...
TOCm = 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 00.004 seconds)

Credits

Created by Suman Ray Pramanik
Indian Institute of Technology (IIT), Kanpur
Suman Ray Pramanik has created this Calculator and 50+ more calculators!
Verified by Team Softusvista
Softusvista Office (Pune), India
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12 Manufacturing and Purchase Model Calculators

EOQ Manufacturing Model with Shortage
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
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)))
Total Optimum Cost for Purchase Model
Go Total Optimum Cost for Purchase Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*Shortage Cost/(Shortage Cost+Carrying Cost))
Maximum Inventory Purchase Model
Go Maximum Inventory Purchase Model = sqrt(2*Demand per Year*Order Cost/Carrying Cost*(Shortage Cost/(Shortage Cost+Carrying Cost)))
EOQ Purchase Model with Shortage
Go EOQ Purchase Model = sqrt(2*Demand per Year*Order Cost/Carrying Cost*((Shortage Cost+Carrying Cost)/Shortage Cost))
Total Optimum Cost for Manufacturing Model
Go Total Optimum Cost for Manufacturing Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*(1-Demand per Year/Production Rate))
EOQ Manufacturing Model with No Shortage
Go EOQ Manufacturing Model No Shortage = sqrt((2*Order Cost*Demand per Year)/(Carrying Cost*(1-Demand per Year/Production Rate)))
Total Cost for Purchase Model with No Shortage
Go Total Cost for Purchase Model No Shortage = Demand per Year*Purchase Price+sqrt(2*Demand per Year*Carrying Cost*Order Cost)
Maximum Inventory Manufacturing Model
Go Maximum Inventory Manufacturing Model = (1-Demand per Year/Production Rate)*EOQ Manufacturing Model with Shortage-Maximum Stock out Manufacturing Model
EOQ Purchase Model with No Shortage
Go EOQ Purchase Model No Shortage = sqrt(2*Demand per Year*Order Cost/Carrying Cost)
Number of Order for Purchase Models with No Shortage
Go Number of Order Purchase Models no Shortage = Demand per Year/EOQ Purchase Model No Shortage
Maximum Stock Out Purchase Model
Go Maximum Stock out Purchase Model = EOQ Purchase Model-Maximum Inventory Purchase Model

Total Optimum Cost for Manufacturing Model Formula

Total Optimum Cost for Manufacturing Model = sqrt(2*Demand per Year*Carrying Cost*Order Cost*(1-Demand per Year/Production Rate))
TOCm = sqrt(2*D*Cc*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 TOCm 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 (Cc), 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 TOCm = sqrt(2*D*Cc*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 (Cc), 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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