Make three sizes of the sweet dreams brand of bed

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Reference no: EM131745323

The EZ-Zees Bed Company make three sizes of the "Sweet Dreams" brand of bed that they sell (annual demand of 500, 700, and 1100 units for King, Queen, and Double sizes, respecively). They produce this brand on a special machine that requires a number of setup activities every time they want to switch from a different brand to the Sweet Dreams brand, and they also require setup activities to switch from one size to another within the brand. The cost to setup to produce the brand is estimated to be $124; once this setup has been performed, the cost to set up for producing King beds is $52, for Queen it is $48, and for Double it is $35. Inventory holding costs are estimated to be 25% of item value. The company's book value cost for the beds is $325, $275, $200 for King, Queen, and Double beds, respectively.

Using a joint lot-sizing model, the optimal number of production cycles for the "Sweet Dreams" brand will be ______ times per year (to two decimals, think about why we don't need to round to an integer). Each time they produce ______ the Sweet Dreams brand, they should produce Queen Beds (provide an integer for this value - think about why it needs to be rounded).

Reference no: EM131745323

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