Failure Rate percentage
(Failures / operating units) * 100%
Failure Rate
failures / hours of operation
Mean Time Between Failures (MTBF)
total operational hours / failures
repairable components
Mean Time To Failure (MTTF)
total operational hours / failures
non-repairable components
Availability
uptime / (uptime + downtime)
Fault Probability
minor event
Economic Order Quantity (EQ
Order Cost = Holding Cost SQRT(2 * D * S / H) D - units annually S - order cost H - holding cost per unit, per year (annual holding cost / units held)
Annual Holding Cost
Average Demand * Holding Cost
Holding Cost
annual Holding Cost / units held per year
ReOrder Point (ROP)
(Lead Time * Average Demand) + Safety Stock