Manufacturer produces variety of integrated circuits

Assignment Help Operation Management

Reference no: EM132204511

A manufacturer produces a variety of integrated circuits. The cost of setting up to produce a lot of one particular type of integrated circuit is $4,000. The variable production cost is estimated to be $8. By collaborating with its customers, the manufacturer estimates that the demand during the next 8 months will be as follows: 15,000; 24,000; 20,000; 10,000; 5,000; 5,000; 20,000; and 4,000 units. The holding cost rate is .24 on an annual basis. Assume production times are small compared to the length of a month.

Determine the optimal periods in which lots should be produced and the size of the corresponding production batches. Suppose that there are 5000 circuits on hand initially and that it is desired to have at least 4,000 units on hand at the end of the eighth month.

Solve the problem using the Wagner–Whitin algorithm, the Wagelmans–Hoesel–Kolen algorithm, the Silver–Meal heuristic, and the least unit cost heuristic.

Reference no: EM132204511

Questions Cloud

Components of charisma within organizational leadership : What are the most important components of charisma within organizational leadership and why? Draw upon your experience as well as assigned readings.

Establish the best stock level to purchase : A distributor of seasonal items wants to establish the best stock level to purchase.

You have to charisma and personality to be a great leader : Do you agree or disagree with the statement, "You have to charisma and personality to be a great leader"? What does this mean to you?

Laid off due to downsizing and do not expect to return : You and your brother used to work at the powdered metal plant in your hometown but have been laid off due to downsizing and do not expect to return.

Manufacturer produces variety of integrated circuits : A manufacturer produces a variety of integrated circuits. The cost of setting up to produce a lot of one particular type of integrated circuit is $4,000.

Summarize verizon supplier responsibility information : Summarize Verizon's Supplier Responsibility information.

Bigmart from using top-down method of strategic planning : What are some of the potential benefits, and concerns to BigMart from using a top-down method of strategic planning?

Students learn about organizational theory : This week, students learn about organizational theory and the relationship to the role of the 21st century manager.

What kind of managerial work you expect individual selected : Discuss what kind of managerial work you expect the individual selected for this position to be doing, and which particular skills

User Account

All Pages