Show optimal storage spacea tire manufacturer is planning

Assignment Help Business Management
Reference no: EM13367658

Show Optimal Storage Space

A tire manufacturer is planning to introduce a new type of tire that is specifically designed to have anti-skid properties. The manufacturer should increase the storage space by building a new high-bay warehousing system. The forecasted demand for the new tire is 10,000 units per year and is expected to be stable for several years ahead. The cost of the raw material, utilities and labor is $40 per tire.

The company estimates that it will require $200 per production setup and the current capacity is 50,000 tires/year. Assuming a) an inventory carrying cost of 20% of the cost of the tire per year, b) a tire requiring 2 cu. ft of space, and c) an average annual cost of $1 per year per cu.ft, determine the optimal storage space that should be built.

Reference no: EM13367658

Questions Cloud

Tanner bay inc has two departments assembly and packaging : tanner bay inc. has two departments assembly and packaging. the company uses a job-order costing system and computes a
Explain about strategic management - vertical : explain about strategic management - vertical integrationunder what circumstances might a long-term strategic alliance
Value of security and control1 what is the business value : value of security and control1. what is the business value of security and control? discuss.2. discuss how the
Mental model mindsetare mindsets simply shortcuts do we : mental model mindsetare mindsets simply shortcuts? do we really have time to be open-minded to every situation and
Show optimal storage spacea tire manufacturer is planning : show optimal storage spacea tire manufacturer is planning to introduce a new type of tire that is specifically designed
Organization setup in canadaif you were preparing a : organization setup in canadaif you were preparing a business report to help organizations setup operations in canada
Business management scenario questions1 the definition of : business management scenario questions1. the definition of race specified in the statutory language of title vii
Implementing a new performance management programprepare a : implementing a new performance management programprepare a memo to the board describing what actions must be taken
Strong wood company is a distributor of patio furniture : strong wood company is a distributor of patio furniture. data concerning the next months budget appear below.selling

Reviews

Write a Review

Business Management Questions & Answers

  Compare and contrast the synergy approach

Compare and contrast the synergy approach and the parenting/patching approach - pros and cons to each?

  Theories of supply and demand for regulation

Environmental Protection Agency (EPA) regulations tend to go through many stages of review and approval before they are implemented-Describe these complicated procedures in light of the theories of supply and demand for regulation.

  Optimal mix of processes zone- bc petrol daily demands

Excel Solver to evaluate the optimal mix of processes zone and man to minimize costs and meet BC Petrol daily demands.

  Explain types of communication

Based in text, explain types of communication. How are se related to successful organizational communication both internally also externally.

  Self-directed and high performing teamsdetails you are in a

self-directed and high performing teamsdetails you are in a managers meeting. the company has been working on

  Analytical techniques for idea generation at rubbermaid

Analytical Techniques for Idea Generation at Rubbermaid Inc. -  Select a couple of methods and see what you come up with. Some suggested (but not mandatory) techniques that you might wish to explore would include determinant gap maps, dimensional a..

  Discuss the relationships of sustainable thinking

Explain and discuss the relationships of sustainable thinking to crisis management and total quality management paradigms.

  Illustrate what is the average amount of collection float

These checks, on average, are worth $39.90 each and clear the bank in 1.5 days. In addition, your organization disburses 38 checks a day with an average amount of $89.50. These checks clear your bank in 2 days. Illustrate what is the average amoun..

  Demonstrate a plan to get the firm back into good standing

You are the new department manager for a utility company, replacing a longtime manager who failed to address internal theft and accounting indiscretions that have become public knowledge and cause for legal action against some ex-employees. to ..

  Forecasting problem for tracking signals

Forecasting Problem for Tracking Signals - Discuss tracking signals for each and what the implications

  Explain marketing communication mix

Define "marketing communication mix." Marketing communication mix uses five promotional tools. Identify and explain each tool. As the marketing consultant, explain how you would apply each promotional tool to promote Aquafina. Be creative - use ex..

  Define the customer service experiences

Define the customer service experiences and outcome for a fast- food restaurant a doctor surgery and an internet based fashion clothing retailer.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd