MEng Industrial & Supply Chain

Faculty of Engineering and the Built Environment · CDU-ENG-IND-900 · MEng · v1.0.0

The quantitative core of industrial and supply-chain engineering: the economic order quantity and its annual cost, safety stock and the reorder point at a target cycle-service level, overall equipment effectiveness from availability, performance and quality, and the newsvendor quantity for a single selling season.

Lineage

Conquest Designer University, 2026 — authored from the brief, the IEA graduate attributes and the ASCM body of knowledge; no prior institution is claimed

Final research project

Stock, service and the machine: order quantities, buffers and equipment effectiveness in one plant

Syllabus

Lot sizing: ordering cost, holding cost, the EOQ and the cost curve (Harris 1913)
Uncertainty: safety stock, cycle-service level, reorder point under normal demand
Equipment: availability, performance, quality, OEE and the six big losses (Nakajima 1988)
Single-period decisions: underage and overage costs, the critical ratio, the newsvendor quantity

Reference

EOQ: √(2·D·S ÷ H)
Safety stock: z·σ_d·√L (constant lead time); ROP = d·L + SS
OEE: availability × performance × quality
Newsvendor: Q* = μ + σ·Φ⁻¹(Cu ÷ (Cu + Co)), Cu = price − cost, Co = cost − salvage

Units

Economic order quantity · Safety stock and reorder point · Overall equipment effectiveness · Newsvendor order quantity

Role when narrated: You are a professional industrial engineer advising a plant or supply-chain manager. State the assumptions, show the numbers with units, and say what to set on the system and what to watch.

Economic order quantity · eoq

Try with the example

How much should be ordered at a time to minimise ordering plus holding cost, and what does that cost a year?

Reference: Harris, F. W. (1913) How many parts to make at once; ASCM CPIM — the EOQ model

Returns

eoq: Optimal order quantity
ordersPerYear: D ÷ Q*
annualCost: Ordering + holding at Q*

The example

{
  "annualDemand": 12000,
  "orderCost": 150,
  "holdingCostPerUnitYear": 4
}

Agents: POST /faculty/meng-industrial--supply-chain/eoq with JSON {pan, …inputs} and the x-402-payment header. Manifest.

Safety stock and reorder point · safety_stock_rop

Example filled in — consult below

How much buffer stock gives this cycle-service level, and at what stock level should the next order be placed?

Reference: Silver, Pyke & Thomas (2017) ch. 6: safety stock for a cycle-service level, normal demand, constant lead time; ASCM CPIM

Returns

z: Safety factor Φ⁻¹(service level)
safetyStock: z·σ·√L
reorderPoint: d·L + safety stock

The example

{
  "avgDailyDemand": 40,
  "sdDailyDemand": 12,
  "leadTimeDays": 9,
  "serviceLevel": 0.95
}

Agents: POST /faculty/meng-industrial--supply-chain/safety_stock_rop with JSON {pan, …inputs} and the x-402-payment header. Manifest.

Overall equipment effectiveness · oee

Try with the example

How much of the planned production time was truly productive, and which factor lost the most?

Reference: Nakajima (1988) Introduction to TPM: OEE = availability × performance × quality

Returns

availability: Run time ÷ planned time
performance: Ideal cycle × total ÷ run time
quality: Good ÷ total
oee: A × P × Q
largestLoss: availability, performance or quality

The example

{
  "plannedMinutes": 480,
  "downtimeMinutes": 47,
  "idealCycleMinutes": 0.8,
  "totalCount": 500,
  "goodCount": 485
}

Agents: POST /faculty/meng-industrial--supply-chain/oee with JSON {pan, …inputs} and the x-402-payment header. Manifest.

Newsvendor order quantity · newsvendor

Try with the example

For a single season with uncertain demand, how many should be ordered to balance the cost of too few against too many?

Reference: Arrow, Harris & Marschak (1951); Silver, Pyke & Thomas (2017): the newsvendor model with normal demand

Returns

criticalRatio: Cu ÷ (Cu + Co)
z: Φ⁻¹(critical ratio)
orderQuantity: μ + z·σ

The example

{
  "unitCost": 6,
  "price": 15,
  "salvageValue": 2,
  "meanDemand": 500,
  "sdDemand": 120
}

Agents: POST /faculty/meng-industrial--supply-chain/newsvendor with JSON {pan, …inputs} and the x-402-payment header. Manifest.