Compute the total setup plus holding cost

Assignment Help Operation Management

Reference no: EM13101979

Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 10,600 wheel barings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $42, and holding cost is $0.60 per wheel bearing per year. Wheel-Rite can produce 470 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 47 bearings be shipped to it each business day.

a) What is the optimum production quantity? _______units (round your response to the nearest whole number)

b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?_______ units (round your response to the nearest whole number)

c)How many production runs of wheel bearings will Wheel-Rite have in a year?_______runs (round your response to two decimal places)

d)What is the total setup plus holding cost for Wheel-Rite? $________ (round your response to two decimal places)

Reference no: EM13101979

Questions Cloud

Probability of completing assignment : Dr. Stallter has been teaching basic statistics for many years. She knows that 80 percent of the students will complete the assigned problems.

Determine how many grams of copper sulphate are there : Determine how many grams of copper sulphate are there in 219 grams of an aqeous solution that is 20.2% by weight of copper sulphate?

Probability of defectiveness in sample : A Tamiami shearing machine is producing 10 percent defective pieces, which is abnormally high. The quality control engineer has been checking the output by almost continuous sampling since the abnormal condition began.

Document an organizational development problem : Document an organizational development problem and it's solution. Ex- if it directly relates to your present job or workplace it will be of even greater value or else any company your known.

Compute the total setup plus holding cost : Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 10,600 wheel barings each year.

Compute the energy levels : compute the energy levels for the rotation perpendicular to its symmetry axis at J=1. T he bond length in the 14NH 3 =101.2 pm and NHN bond angle 106

Current ratio quick ratio debt-to-total-assets ratio : Calculate the following ratios- current ratio quick ratio debt-to-total-assets ratio, asset turnover as well as average collection period.

Compute the quantity of heat that is absorbed : The heat of vaporization of water =40.66 kJ/mol at 100 °C. Compute the quantity of heat that is absorbed/released when 9.00 grams of steam condenses to liquid water at the temperature of100 degree celsius.

What is the yearly sales distribution : Five distinct products in a product family of the Cumberland Company have identical sales patterns. Every averages 100 units per month with a standard deviation of 10 units. Assuming normal distributions as well as independent demands

User Account

All Pages