Determine the approximate length of production run

Assignment Help Operation Management

Reference no: EM13108408

A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage and handling costs are $5 per ton a year. The firm operates 200 days a year. (Note: 1 ton = 2,000 pounds.)
a.
How many bags per run are optimal? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)
b.
What would the average inventory be for this lot size? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)
c.
Determine the approximate length of a production run, in days. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)
d.
About how many runs per year would there be? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)
e.
How much could the company save annually if the setup cost could be reduced to $25 per run? (Round your intermediate calculations and final answer to 2 decimal places. Omit the "tiny_mce_markerquot; sign in your response.)

Reference no: EM13108408

Questions Cloud

E-commerce business model : Compare and contrast your chosen websites: which website is more likely to be successful than the other, and why and How well does the website personalise the experience for users?

Choose one of the four views of the integration : Choose one of the four views of the integration of Christianity and psychology. Discuss why you believe this is the best approach.

Find the range of output : A company that produces pleasure boats has decided to expand one of its lines. Current facilities are insufficient to handle the increased workload, so the company is considering three alternatives.

Describe the following leadership qualities : (I) Describe the following leadership qualities: ability, enthusiasm, stability, and concern for others. (II) Use examples from our book to provide the details of how each quality enhances leadership effectiveness. (III) Explain what results from ..

Determine the approximate length of production run : A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day.

What best serves the global social interests : What global social interests or responsibilities, if any, do we have as consumers to the losers of globalization? Discuss and justify your postings and responses with other students in our course.

Describe the three key factors in interpersonal attraction : In your own words, (A) define cognitive therapy and (B) contrast Ellis's rational-emotive behavior therapy with Beck's cognitive-behavior therapy.

Inflation and unemployment in terms of unemployment : Give a graphical representation of the trend in inflation and unemployment in terms of unemployment for the period 1983 - 2011. Comment outcome.

Determining two way analysis of variance : I want to see two methods are the significantly same or not. Each methods has 5 variables are inside. so I would like to see each 5 variables from methods A and B are significantly the same and overall the two methods are significantly same or not..

User Account

All Pages