F.W. Harris was an American engineer, management scientist, and patent attorney born in 1877. Some of his key contributions include developing the Economic Order Quantity (EOQ) model in 1913 to determine optimal inventory lot sizes. This seminal work helped establish the field of management science and is still used today. Harris also patented several electrical inventions early in his career before transitioning to patent law. He had a long and varied career spanning over 50 years across multiple fields.

2. F. W. HARRIS – EOQ MODEL
Shah Rukh Zafar Suri
(C)
Inzamam Ashraf (L)
Kashif Bashir
Asad Mustafa
Muhammad Imtiaz
Sajid Mehmood

3. INTRODUCTION (F. W. HARRIS)
Asad Mustafa

4. INTRODUCTION OF F. W. HARRIS
 Born in Deering, Maine on August 8, 1877
 Parents are Fred Ford and Harriet Whitney
(Fox) Harris
 His major contribution as a management
scientist is admirable

5. F.W. Harris (1877-1962)

6. HOBBIES
 Thoroughly enjoyed life in Los Angeles and
the American West
 Enthusiastic and lifelong golfer, although only
an average player
 Trout fishing and took many pack trips to
inaccessible area, British Columbia
 Photography nut
 Purely social activities bored him

7. FAMILY LIFE
 F. W. Harris loves
outings with his family
 F. W. Harris & his wife
Eugenia enjoying sitting
by a stream near a
large grove of trees

8. FAMILY

9. ACHIEVEMENTS
 President of Big Rock Ranch Co.
 Vice President of Wulff Process Co.
 Vice President of Patco, Inc
 First President of the Los Angeles Patent
Law Association

10. MEMBERSHIPS
 Member of the American Bar Association
 Member of American Patent Law Association
 Member of American Institute of Electrical
Engineers
 Member of American Society of Mechanical
Engineers
 Member of American Chemical Society
 Member of the California Club
 Member of the Wilshire Country Club

11. BRIEF HISTORY
Kashif Bashir

12. HISTORY
 Born in 1877 and grew up in the Portland,
Maine area
 He received a high school education till 1895
 He worked for four years as an engineering
apprentice and draftsman for two Portland
employers
1. Belknap Motor Company
2. Maine Electric Company

13. HISTORY
 In 1900, he moved to Pittsburgh,
Pennsylvania
 He became a draftsman and engineer for
Heyl and Patterson in Pittsburgh
 From 1904—1912, Harris was employed as
an engineer for the Westinghouse Electric
and Manufacturing Company in East
Pittsburgh

14. ELECTRICAL FIELD HISTORY
 Tutoring and self-study had educated him
in Electrical Engineering, and he had
patented a number of inventions in the
Electrical field
 These patents had all been assigned to
Westinghouse as his employer. Patents
continued to be granted in his name and
assigned to Westinghouse as late as 1916

15. HISTORY
 At the age of 35, Harris thought to retool his
career
 He thought that his agreement with
Westinghouse barred competitive
employment, and blocked him from further
inventions in Electrical field

16. PATENT ATTORNEY HISTORY
 In 1912, Harris left Westinghouse and moved
to Los Angeles, California
 He may have wanted to expand his horizons
beyond the confines of Westinghouse
 The became a consulting engineer in Los
Angeles, and there he entered the field of
patent law

17. PATENT ATTORNEY HISTORY
 He was admitted to practice before the U.S.
Patent Office in 1914 and became a member
of the California Bar in 1916
 His admission to practice before the U.S.
Supreme Court was in 1922
 In Los Angeles, Harris was initially
associated with the firm of Townsend,
Graham and Harris and later with the firm of
Graham and Harris before opening his own
office in 1923

18. PATENT ATTORNEY HISTORY
 He was one of the founders and, in 1934, the
first president of the Los Angeles Patent Law
Association
 Up to the time of his death he was a member
of the American Bar Association and the
American Patent Law Association
 He died in Los Angeles on October 27, 1962
at the age of 85

19. MAJOR CONTRIBUTIONS
Shah Rukh Zafar Suri

20. CONTRIBUTIONS
 His life is full of achievements and
contributions in his three fields:
 Electrical Engineering
 Management Scientist
 Patent Attorney Holder

21. ELECTRICAL FIELD
 He had patented a number of inventions in
the Electrical field
 Harris's activities as an inventor spanned
more than 50 years
 His first (joint) patent, issued in 1904 and
assigned to Heyl and Patterson, was for a
speed controller
 His last patent, issued in 1958 when he was
80 years old, was for components of a
regenerative heat exchanger

22. ELECTRICAL FIELD
 Up-till 1916, were for electrical devices—
circuit breakers and switches, fuses, and
controllers for electric motors—and were
assigned to Westinghouse (Company)
 Later patent ones were associated with
petroleum extraction—devices for pumping
oil, dehydrators and separators for oil
emulsions, and apparatus for reaming wells

23. ELECTRICAL FIELD
 Some scatter inventions or works were on:
I. Disc harrow
II. Automatic water heaters
III. Side-loading hearse with a fixed turntable

24. ELECTRICAL FIELD
 Harris contributed frequently to the
discussions of technical papers in the
Transactions of AIEE during the period 1910-
1915
 He also served on AIEE's Protective
Apparatus Committee in 1915 and 1916

25. MANAGEMENT SCIENCES
 The first paper on management sciences
was the one on the EOQ formula
 Published in Factory, The Magazine of
Management in its February 1913 issue
 Cited by more than 100 people in their
research papers and over 10k readers in
1913
 A dozen more of his articles were published
in Factory over the next five years.

26. PATENT ATTORNEY
 Ford Harris authored or coauthored two
books and more than a score of articles,
comments, and reviews
 His writings in this area began in 1914 with a
series on practical patent issues that was
published in Machinery, and continued
through 1954, when he was 76 years old

27. MANAGEMENT SCIENCES
Inzamam Ashraf

28. CONTRIBUTIONS TOWARDS MANAGEMENT
 Ford Harris's writings on management topics
must have begun soon after he left
Westinghouse in 1912
 His first full paper, "How Many Parts to Make at
Once," in which he develops the EOQ model,
appeared in Factory, The Magazine of
Management in February 1913
 Harris´s Economic Order Quantity (EOQ) model
has been widely studied and is staple of
virtually every management science or
inventory management textbook
 After this a rapid series of publications begins

29. CONTRIBUTIONS TOWARDS MANAGEMENT
 The A. W. Shaw Company’s flagship
publication was System, The Magazine of
Business, which was renamed Business
Week after it was acquired by McGraw-Hill in
1928
 Harris contributed an article on the “make or
buy” problem to System in 1914

30. CONTRIBUTIONS TOWARDS MANAGEMENT
 "How Much Stock to Keep on Hand" was
also published in the following month in
system, The magazine of Business
 This takes more of a systems view of the
inventory function, and shows considerable
understanding of the need for coordination
between marketing, engineering, and
production

31. CONTRIBUTIONS TOWARDS MANAGEMENT
 Ford Harris's original 1913 paper on the EOQ
model was forgotten until its rediscovery in 1988
 His chapter on the EOQ model in The Library of
Factory Management was erroneously cited and
apparently unread for many years
 At various times, others have been credited with
the development of the EOQ formula
 It does not appear that Harris sought,
received, or expected any recognition for
this contribution during his lifetime. Even
his own family was unaware that he had
made such a contribution.

32. EOQ MODEL – INVENTORY & INVENTORY
CONTROL
Sajid Mehmood

33. INVENTORY
 Inventories represent those items which are
either stocked for sale or they are in the process
of manufacturing or they are in the form of
materials, which are yet to be utilized
 It is necessary to hold inventories of various
kinds to act as a buffer between supply and
demand for efficient operation of the system
 Thus, an effective control on inventory is a must
for smooth and efficient running of the
production cycle with least interruptions

34. BENEFITS OF KEEPING INVENTORIES
 To stabilize production
 To take advantage of price discounts
 To meet the demand during the
replenishment period
 To prevent loss of orders (sales)
 To keep pace with changing market
conditions

35. INVENTORY CONTROL
 Inventory control is a planned approach of
determining what to order, when to order and
how much to order and how much to stock
so that costs associated with buying and
storing are optimal without interrupting
production and sales
1. Order level - When should an order be
placed?
2. Order quantity - How much should be
ordered?

36. OBJECTIVES OF INVENTORY CONTROL
 adequate supply of products to customer
 financial investment in inventories is
minimum
 Efficient purchasing, storing, consumption
and accounting for materials
 maintain the stock within the desired limits
 To ensure timely action for replenishment
 Scientific base for both short-term and long-term
planning of materials

37. BENEFITS OF INVENTORY CONTROL
 Improvement in customer’s relationship
 Smooth and uninterrupted production and,
hence, no stock out
 Efficient utilization of working capital
 Minimizing loss due to deterioration,
obsolescence damage and pilferage
 Economy in purchasing
 Eliminates the possibility of duplicate
ordering.

38. EOQ MODEL – ECONOMIC LOT SIZE FOR
INVENTORY CONTROL
Muhammad Imtiaz

39. EOQ MODEL
 How much to order, two basic costs are considered namely:
1. Inventory carrying costs
2. Ordering or acquisition costs
 As the quantity ordered is increased, the inventory carrying
cost increases while the ordering cost decreases.

40. EOQ MODEL
 The ‘order quantity’ means the quantity
produced or procured during one production
cycle. Economic Order Quantity (EOQ) is
that size of order which minimizes total
costs of carrying and cost of ordering. i.e.,
Minimum Total Cost occurs when
Inventory Carrying Cost = Ordering
Cost

41. EOQ - SOLUTION METHODS
 Economic order quantity can be determined
by two methods:
 Tabulation method
 Analytical method

42. TABULATION METHOD - STEPS
 Select the number of possible lot sizes to
purchase
 Determine average inventory carrying cost for
the lot purchased
 Determine the total ordering cost for the orders
placed
 Determine the total cost for each lot size chosen
which is the summation of inventory carrying
cost and ordering cost
 Select the ordering quantity, which minimizes
the total cost

43. TABULATION METHOD - EXAMPLE

44. ANALYTICAL METHOD - ASSUMPTIONS
 Demand is known and uniform
 Shortages are not permitted, i.e., as soon as the level of the
inventory reaches zero, the inventory is replenished
 Production or supply of commodity is instantaneous.
 Lead-time is zero

45. EOQ FORMULAE
C1 = Inventory carrying cost
C3 = Set-up cost per production run
D = Total number of units produced
Q = Lot size in each production run

46. PROS AND CONS
 This theory gives systematic approach to find
lowest possible cost for economic lot sizes.
But its cons also exist:
 Demand is not constant in real cases. Demand
of Goods fluctuates in real cases
 Lead time is also non zero in real cases.
 Shortages are permitted in real cases.
 Production and supply is not istantaneous in
real cases.