What is the maximum inventory level

Assignment Help Operation Management
Reference no: EM131698124

Inventory

Scott’s Vacuum Cleaner Manufacturing Company produces 24,000 vacuum cleaners per year. One component part is required that is currently manufactured at one of its own facilities. It costs the company $10 per component, plus $20 to initiate a production order. They estimate that they have capacity to produce up to 40,000 components per year. Assume that holding costs are based on 24% annual interest.

What is the maximum inventory level?

Reference no: EM131698124

Questions Cloud

Explains the differences between the EPQ and EOQ options : What explains the differences between the EPQ and EOQ options?
Inventory-what are order size-cost-maximum inventory level : Scott’s Vacuum Cleaner Manufacturing Company produces 24,000 vacuum cleaners per year. What are the order size, cost, and maximum inventory level?
Predictability and control to your firm : Your manager asks you to explore whether or not a Program Management Office (PMO) would help bring more predictability and control to your firm.
Project have been named cost-schedule and performance : The three main aspects of a project have been named “cost, schedule, and performance.”
What is the maximum inventory level : What is the maximum inventory level?
Who would you define as a project stakeholder : Who would you define as a project stakeholder? Possibly list some categories of stakeholders
Some possible consequences of stakeholder mismanagement : What are some possible consequences of stakeholder mismanagement?
What makes identifying customers difficult in this industry : Identify three industries that may have difficulty identifying their end-user customers. What makes identifying customers difficult in this industry?
Describe how to build cultural values proposition : You have been appointed Business Development Manager for the Cleveland Orchestra. describe how to build a Cultural Values Proposition.

Reviews

Write a Review

Operation Management Questions & Answers

  Define innovation

define “innovation.” Please use your own words and no references. If done correctly, this is actually a difficult task and will count for a participation post this week.

  Which city provides the lowest overall costs

Location Annual Fixed Costs Variable Costs per Shipment Denver $5,000,000 $4.65 Santa Fe $4,200,000 $6.25 Salt Lake City $3,500,000 $7.25 a. Plot the total cost curves for all the locations on a single graph. b. Which city provides the lowest over..

  Leadership position is to focus on supporting the self-worth

Some have suggested one of the primary roles of those in a leadership position is to focus on supporting the self-worth of followers which, in turn, leads to task performance provided to the leader. Consider ways follower perceptions of leaders and l..

  What is the efficiency of the plant

What is the efficiency of the plant and Construct a diagram showing the four measures of capacity/efficiency and calculate MAD for both methods.

  Determine costcos economic order quantity

The demand for spring water at the SLC Costco is 600 liters per week. The setup cost for placing an order to replenish inventory is $25. The order is delivered by the supplier which charges Costco $0.10/liter for the cost of transportation from the R..

  Appreciation for chance to work with valuable art pieces

Art handlers are typically highly educated artists with a deep appreciation for the chance to work with valuable art pieces. They work for auction houses and art-handling services, carefully packing items and trans- porting them to museums, homes, bu..

  Discuss your design for a cross-functional training program

How will you determine whether the candidates are a fit for the team? Discuss your design for a cross-functional training program that aligns strategic plant goals with each work group. Identify the training topics that you will use to foster dive..

  Think the five industry forces affect that organization

Describe an organization, and how you think the 5 industry forces affect that organization. Which force was the strongest in limiting how successful the organization could be (describe the reason why it limited success)?

  Ticket prices and the patrons flying occurrences

In 2-3 pages (not counting cover and references), explain what expenses and costs facing today's air industry. In addition, evaluate what the current fuel costs do to the industry and how they affect the ticket prices and the patrons' flying oc..

  Difference between manager and leader

Who was Ewing Marion Kauffman, what did he do, and what was his philosophy of entrepreneurial leadership? What is the difference between a manager and a leader?

  Generate any revenue for the hospital from the campaign

You are the director of marketing for a regional hospital. The board of directors at your hospital has studied the 2011 Institute of Medicine (IOM) report Early Childhood Obesity Prevention Policies. Do you expect to generate any revenue for the hosp..

  Assuming stockout costs for lost sales

The S&OP team at Kansas Furniture has received estimates of demand requirements as shown in the table. Assuming stockout costs for lost sales of $125 per unit, inventory carrying costs of $20 per unit per month, and zero beginning and ending inventor..

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