Illustrate what is the length of a production run in days

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Reference no: EM1373913

Q. company is about to begin production of a new product. The manager of the department that will produce one of the components for the product wants to know explain how often the machine used to produce the item will be available for other work. The machine will produce the item at a rate of 200 units a day. Eighty units will be used daily in assembling the final product. Assembly will take place 5 days a week, 50 weeks a year. The manager estimates that it will take almost a full day to get the machine ready for a production run, at a cost of birr 300. Inventory holding cost will be birr 10 a year.

a. Illustrate what run quantity should be used to minimize total Yearly costs?

b. Illustrate what is the length of a production run in days?

c. During production, at illustrate what rate will inventory build up?

d. If the manager wants to run another occupation among runs of this item, which needs a minimum of 10 days per cycle for the other work, will there be enough time?

Reference no: EM1373913

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