Effect of this price increase on the production lot sizes

Assignment Help Operation Management

Reference no: EM13968180

A well-known manufacturer of serveral brands of toothpaste uses the production lot size model to determine production quantities for its various products. The product known as Extra White is currently being produced in production lot sizez of 5000 units. The length of the production run for this quantity is 10 days. Because of a recent shortage of a particular raw material, the supplier of the material announced that a cost increase will be passed along to the manufacturer of Extra White. Current estimates are that the new raw material cost will increase the manufacturing cost of the toothpaste products by 23% per unit. What will be the effect of this price increase on the production lot sizes for Extra White?

Reference no: EM13968180

Questions Cloud

Internal machine constraints limiting your production : You are a manager of a plant that is constrained by the market. That is, there are no internal machine constraints limiting your production. You have a choice to produce an order in either one lot of 1000 units or ten lots of 100 units each. Explain ..

The potential for profitability in industries is in flux : The potential for profitability in industries is in flux, managers react in kind. which of the following do they usually not question when they react in kind?

Culture provides a sense of identity to members : Culture provides a sense of identity to members and increases their commitment to the organization; provides a means for employees to interpret the meaning of organizational events; reinforces the values of the organization; and _________________.

Discuss the stages of team development : Discuss the stages of team development. As the leader of a virtual team, how would you facilitate the team’s development through each stage?

Effect of this price increase on the production lot sizes : A well-known manufacturer of serveral brands of toothpaste uses the production lot size model to determine production quantities for its various products. The product known as Extra White is currently being produced in production lot sizez of 5000 un..

Types of products-markets might this practice make sense : Some companies have reportedly abandoned the practice of doing a customer test with the early prototypes of their products, preferring instead to go directly and quickly to market in order to observe the actual customer response. For what types of pr..

What kind of inherency is being used in each case : Inherent Barriers. Jason is judging a court case in a remote corner Texas. The plaintiff (or accuser) argued that the defendant wrongly stole his pet squirrel. The defendant responds by arguing that the following inherent barriers prevented her from ..

Looks-like prototype from the works-like prototype : Many product development teams separate the “looks-like” prototype from the “works-like” prototype. They do this because integrating both function and form is difficult in the early phases of development. What are the strengths and weaknesses of this..

Calculate the necessary values-format the titles : You work at ABC Electronic and this is your first day. Your supervisor has given you a task to inventory all of the small electronics such as mp3's, iPods and tablets in MS Excel. Explain how you will calculate the necessary values, format the titles..

User Account

All Pages