What are total costs for ordering and maintaining inventory

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Reference no: EM132295141

1. C&A makes two types of products using four machines from 9 a.m. to 5 p.m. each day. Product A visits machines 1, 2, and 4. Product B only visits machines 1 and 3. The capacity is 0.4 unit per minute at machine 1, 0.12 unit per minute at machine 2, 0.2 unit per minute at machine 3, and 0.3 unit per minute at machine 4. The demand per day is 40 units for Product A and 160 units for Product B. Which resource is the bottleneck?

2. A company buys directly from the supplier a component that it uses in the manufacture of generators for airplanes. The production operation of the generator, which works at a constant rate, will require a thousand components per month throughout the year (12,000 units per year). Suppose the ordering costs are $ 25 per order, the unit cost is $ 2.50 per component and the annual maintenance costs and a delivery time of five days. Answer the following questions about the inventory policy.

a) Economic amount to order

b) What is the cycle time?

c) What are the total costs for ordering and maintaining inventory?

Reference no: EM132295141

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