Supplies baseball bats to major-minor league baseball teams

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Reference no: EM132129355

All-Star Bat Manufacturing, Inc. supplies baseball bats to major and minor league baseball teams. After an initial order in January, demand over the six-month baseball season is approximately constant at 1000 bats per month. Assuming that the bat production process can handle up to 4000 bats per month, the bat production setup costs are $150 per setup, the production costs is $10 per bat, and the holding costs have a monthly rate of 2%, what production lot size would you recommend to meet the demand during the baseball season? If All-Star operates 20 days per month, how often will the production process operate, and what is the length of a production run? This is a production lot size model. However, the operation is only six months rather than a full year. The basis for analysis may be for periods of one month, 6 months, or a full year. The inventory policy will be the same. In your analysis use a monthly basis.

Reference no: EM132129355

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