Find the optimum number of units to be produced

Assignment Help Operation Management

Reference no: EM13231557

A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 60 units per day. The setup cost for a production run is $ 125.00. The cost of holding is $ 4.00 per unit per year. The demand for the item is continuous and constant and is 3,900 units per year. (Note: The demand occurs only when the company is operating, that is, 5 days a week for 52 weeks). Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer.

Reference no: EM13231557

Questions Cloud

Did any differences lead to different conclusions or auditon : Problem , Did any differences lead to different conclusions or auditor decisions?

Analyze how the stipulations of the treaty of versailles : Analyze how the stipulations of the Treaty of Versailles that ended World War I, along with the Great Depression of the 1930s, contributed to the outbreak of World War II.

Explain how to increase the temperature of solid diamond : In the laboratory a student finds that it takes 96.8 Joules to increase the temperature of 14.3 grams of solid diamond from 24.0 to 38.1 degrees Celsius.

Analyze how nationalism and militarism contributed : Analyze how nationalism and militarism contributed to the outbreak of World War I.

Find the optimum number of units to be produced : Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer.

Determine what is the cartels profit maximizing price of oil : Suppose that demand for cartel's oil is given by P=50-.1Q where P is the price per barrel and Q is the quantity produced in barrels. If the cartel's aggregate marginal cost is given by MC= 10+0.2Q what is the cartel's profit maximizing price of oi..

Analyze how the reforms of mikhail gorbachev led : Analyze how the reforms of Mikhail Gorbachev led to the breakup of the Soviet Union. Point out what events led to the ascendency of Gorbachev to party leadership, and then identify and analyze Gorbachev's reforms.

What is price of oil and quantity of oil produced by cartel : Suppose that 3 countries who form a cartel agreed to divide the oil market equally. Demand for oil is given by P=50-.1Q where P is the price of oil in dollars per barrel and Q is the Quantity in thousands of barrels per day.

Explain what is parity rule : For each of these three chemicals, state how the "parity rule" is (or is not) obeyed by the MS data. If this question cannot be answered for a chemical, state briefly why not (for example, what additional data would be needed or why the situation ..

User Account

All Pages