The output of the bottleneck determines the system's capacity. The oven, which can complete 6 dozen orders in an hour (60 minutes/10 minutes), is the bottleneck. This is based on twelve-unit order sizes.
When stated as a process capability index (such as C pk or C pm) or as a process performance index, the process capability of a process can be measured in relation to the specification (e.g., P pk or P pm ). A histogram and calculations that forecast the number of items that will be produced outside of specifications are frequently used to display the results of this measurement.
Economic order quantity (EOQ) is the order size that reduces the total cost of buying and retaining stocks of goods or raw materials. In order to reduce the total annual inventory cost of the company, the supplier should be contacted to determine the ideal inventory size.
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