Total monthly setup and holding cost would be minimized

Assignment Help Operation Management

Reference no: EM131232786

There is a $5200 cost of setting up for a run and the monthly holding cost for a finished product is $2.61. Part of the holding cost is due to a 5% risk each month that the product on hand will become obsolete. The minimum attractive rate of return is considered to be 1.5% monthly; inventory has a value of $38.02/unit and if obsolete $17.00/unit. With a forecast demand of 618/month and a production rate of $1000/month, the total monthly setup and holding cost would be minimized by a lot size most nearly:____?

Reference no: EM131232786

Questions Cloud

Identify the four stages in a learning cycle : Identify the four stages in a learning cycle. Describe the four principal activities in the Design for Six Sigma process. What are the two premises of Juran’s view on quality? Describe the business level strategy used in a firm you have worked in. Wh..

Dreamer and share as many absurd ideas : First, pick a product, any product that strikes your fancy. Next think about how you might get people to buy more of the the product. In your original post be a dreamer and share as many “absurd” ideas as you can with your classmates

The use of artificial intelligence : What are some of the dangers or limitations that you see in the use of artificial intelligence, expert systems and virtual reality technologies? Provide citations and references.

Analyze your own negotiating style : Analyze your own negotiating style. Which stages do you emphasize more and which less? In what ways could your natural style of negotiating (ie. the style you use at home with business people from your own culture) cause problems when negotiating abr..

Total monthly setup and holding cost would be minimized : There is a $5200 cost of setting up for a run and the monthly holding cost for a finished product is $2.61. Part of the holding cost is due to a 5% risk each month that the product on hand will become obsolete. With a forecast demand of 618/month and..

Supply management and logistics management : Discuss the interface between purchasing and supply management and logistics management-specifically with respect to selection of the third party logistics provider, analysis of the total cost of ownership, use of e-procurement capability, integratio..

Contribute to learning of class by sharing your reflections : Contribute to the learning of the class by sharing your reflections on how your place of employment (or an organization of your choosing) might use any of the Simulation concepts in Chapter 11 to improve organizational performance.

How can ge overcome these criticisms : How can GE overcome these criticisms? How can supranational organizations like the WTO, governments, NGOs (non-governmental organizations) and businesses work together to create sustainable international trade? Provide at least two strategies or meth..

Global corporation would have an agenda to cure the world : GE’s mission statement reads: “GE imagines things others don’t, builds things others can’t and delivers outcomes that make the world work better. GE brings together the physical and digital worlds in ways no other company can. Does it surprise you th..

User Account

All Pages