Optimal production run quantity

Assignment Help Operation Management

Reference no: EM1393116

The Ambrosia Bakery makes cakes for freezing and subsequent sale. The bakery, which operates five days a week, 52 weeks a year, can produce cakes at the rate of 116 cakes per day. The bakery sets up the cake-production operation and produces until a predetermined number (Q) have been produced. When not producing cakes, the bakery uses its personnel and facilities for producing other bakery items. The setup cost for a production run of cakes is $700. The cost of holding frozen cakes in storage is $9 per cake per year. The annual demand for frozen cakes, which is constant over time, is 6000 cakes. Determine the following:

a. Optimal production run quantity (Q)

b. Total annual inventory costs

c. Optimal number of production runs per year

d. Optimal cycle time (time between run starts)

e. Run length in working days

Reference no: EM1393116

Questions Cloud

Arithmetic mean income : Critically illustrate out the range? What is the arithmetic mean income? What is the population variance?

At what initial speed should player throw the basketball : A 2.00 m tall basketball player wants to make a goal from 10.0 m from the basket. If he shoots the ball at a 45.0° angle, at what initial speed should he throw the basketball so that it goes through the hoop without striking the backboard.

Why genomes eukaryotes needs multiple origins of replication : Explain why do genomes of eukaryotes need to have multiple origins of replication, whereas bacterial genomes have only a single origin?

Error between the sample mean and population mean : A random sample obtained from a population has a mean of µ=100 and a standard deviation of σ = 20. The error between the sample mean and the population mean for a sample of n = 16 is 5 points and the error between a sample men and population mean ..

Optimal production run quantity : Optimal production run quantity. Total annual inventory costs. Optimal number of production runs per year

What is the coefficient of friction between cheese and ice : on one particular shot, his 1.00 g pellet gets stuck in the cheese, causing it to slide 25 cm before coming to a stop. If the muzzle velocity of the gun is 64m/s and cheese has a mass of 98 g, what is the coefficient of friction between the cheese..

Estimating expected return and standard deviation : An analyst thinks that the economic conditions during the next year will either be Strong, Normal or Weak and she thinks that the Simpson Company's returns will have the following probability distribution.

Determine the energy lost to friction throughout that time : A spool of thin wire (with inner radius r = 0.50 m, outer radius R = 0.65 m, and moment of inertia I_cm = 1.1323 kg*m2) pivots on a shaft.

Evidence of an improvement on the final exam : A random sample of 7 students selected from a large class revealed the following scores: midterm 70, 62, 57, 68, 89, 63, 82 and on the final 80, 79, 87, 88, 85, 79, 91. Is there evidence of an improvement on the final?

User Account

All Pages