F2 Formulas

Reorder Level = maximum usage x maximum lead time

Minimum level = reorder level (average usage x average lead time)
Maximum level = reorder level + reorder quantity (minimum usage x minimum
lead time)
Average stock = Buffer stock +

Order Quantity
2

Economic order quantity (EOQ) =

2 xC o x D
Ch

Economic batch quantity (EBQ) =

2x Co x D
D
C h(1 )
R

Wages (Hourly rate scheme) = Hours worked x rate of pay per hour
Wages (Piecework scheme) = Units produced x rate of pay per unit

Idle time ratio =

Idle hours
x 100
Total hours

Labour turnover rate =

Correlation coefficient =

Replacments
x 100
averagenumber of employees
n XY X Y
(n X 2( ))