What is the economic production quantity in bags

Assignment Help Operation Management

Reference no: EM131435028

Healthy Plants Ltd. (HP) produces its premium plant food in 100-pound bags. Demand for the product is 100,000 pounds per week. HP operates 50 weeks per year. HP can produce 250,000 pounds per week. The setup cost is $200 and the annual holding cost rate is $0.55 per bag. Currently, HP produces its premium plant food in batches of 1,000,000 pounds.

(a) What is the economic production quantity (EPQ) in bags?

(b) What is the maximum inventory level in bags using the economic production quantity (EPQ) as the quantity of plant food to make per production cycle?

(c) What is the total annual cost of using the economic production quantity (EPQ) as quantity of plant food to make per production cycle?

Reference no: EM131435028

Questions Cloud

Explain role of valuation in field of financial management : Explain the role of valuation in the field of financial management? What are several examples of how a company might use the valuation process?

What percentage of toxic waste : E-waste accounts for what percentage of toxic waste? Which of the following countries is experiencing high population growth as a result of migration, rather than natural population increase

The dada artists waged war on : Duchamp selected an ordinary object that was mass produced and asserted it as art, something he called _______. The Dada artists waged war on ________.

Transition from middle school to high school : Choose one topic of interest to you related to your degree program. Then, explore available scholarly peer-reviewed resources using at least three of the databases - The topic of interest is Special Education - At Risk Students: Transition from Middl..

What is the economic production quantity in bags : Healthy Plants Ltd. (HP) produces its premium plant food in 100-pound bags. Demand for the product is 100,000 pounds per week. HP operates 50 weeks per year. HP can produce 250,000 pounds per week. What is the economic production quantity (EPQ) in b..

Present value of the bond : Because of the limitations of WEBCT random numbers, some of the options may be trading below their intrinsic value. Hint, to find the present value of the bond, you do not need to make the e x adjustment, simple discount at the risk free rate.

What types of credit does the company use : What types of credit does the company use and how are they managed? How would you measure the different forms of debt?What types of credit does the company extend to individuals and businesses and how are these managed? How would you measure the di..

Determining the internal rate of return : Briefly describe how to calculate Net Present Value (NPV), Internal Rate of Return (IRR), and Modified IRR (MIRR) What is the rationale behind each method?

Books about christianity and novels with christian theme : Alicia Walker owns a bookstore called "Alicia's Christian Bookstore". It sells only books about Christianity, and novels with a Christian theme. The bookstore is doing well, and Alicia realizes she needs to add another cashier to ring up sales.

User Account

All Pages