Calculate the economic production quantity for mulch

Assignment Help Operation Management

Reference no: EM132103119

Iron Hill Pallet Company produces hardwood mulch by grinding used pallets. The company’s grinder can produce 12 cubic yards of mulch per hour and operates the grinder 24 hours per day for 250 days per year. The annual demand for mulch is 49,000 cubic yards. It costs Iron Hill $200 to setup the grinder for production. It costs iron hill $20 to produce a cubic yard of mulch, and they use a factor of 15% to calculate the inventory holding cost. Calculate the economic production quantity for mulch.

Reference no: EM132103119

Questions Cloud

How much principal will the company plan to repay : Assuming that Austin Paints has $7,000 in excess cash budgeted for April, how much principal will the company plan to repay

Calculate the minimum cost cycle time in days : MySchool Notebook Company produces custom 3-ring binders with school logos for high schools in the Midwest. Calculate the minimum cost cycle time in days.

Strategies is key aspect of external audit : Develop a Competitive Profile Matrix for Hershey Company Purpose Monitor competitive performances and strategies is a key aspect of an external audit.

Determine the probability for each stock : he market risk premium for the S & P 500 has averaged 5.5 percent. Determine the probability for each stock

Calculate the economic production quantity for mulch : Iron Hill Pallet Company produces hardwood mulch by grinding used pallets. Calculate the economic production quantity for mulch.

What are two major research issues involved in sampling : What common mistakes do people make when they communicate? Discuss what are two major research issues involved in sampling

Prepare a schedule to determine the correct inventory amount : According to its records, the inventory balance at year-end was $796,290. Prepare a schedule to determine the correct inventory amount

Main dashboard structure for new car design : Plainwell Polymers is going to producing the main dashboard structure for a new car design.

An effective way of demonstrating professionalism : An effective way of demonstrating professionalism from the very beginning is to ________.

User Account

All Pages