What is the optimal size of production run for this module

Assignment Help Operation Management
Reference no: EM132120304

A producer of industrial climate control modules has recently changed to cellular manufacturing. The production facility operates 250 days per year and has annual demand of 9,500 units They can produce up to 80 modules each day. It costs $28.50 to set up a work cell to produce this module. The cost of each module is $35 and annual holding costs are $7 per unit. Setup labor cost is $15 per hour.

What is the optimal size of the production run for this module? (Display your answer to the nearest whole number.)

Given your answer to the previous question, how many production runs will be required each year in order to meet the annual demand? (Display your answer up to the nearest whole number.)

How much time (in minutes) does it take to set up a work cell? (Display your answer to two decimal places.)

Suppose the main customer for this module wants to purchase in quantities of 150 units. What is the required setup time (in minutes) to make this order quantity an optimal production run quantity? (Display your answer to two decimal places.)

Reference no: EM132120304

Questions Cloud

What will be annual total combined savings to ordering costs : What will be the annual total combined savings to ordering costs and holding costs when using the reduced order cost, as compared to the original ordering cost?
How many kanbans do they require for bamboo back cover : Given the above information, how many kanbans do they require for the bamboo back cover?
Define types of policies a government can follow : Education provides both private benefits to those who receive it and broader social benefits for the economy as a whole. Think about the types of policies.
The major impact of the walmart decision : What in your opinion will be the major impact of the Walmart decision to purchase FOB from its suppliers?
What is the optimal size of production run for this module : What is the optimal size of the production run for this module? How much time (in minutes) does it take to set up a work cell?
Why does the government provide tornado sirens : Radio stations, tornado sirens, light houses, and street lights are all public goods in that all are nonrivalrous and nonexclusionary.
Two firms work together to prepare complex bid for buyer : Two firms work together to prepare a complex bid for a buyer. what theory of recovery can Company B allege? What types of damages, if any, may Company B claim?
Show amount of subsidy need to increase equilibrium quantity : The marginal private costs and the marginal private benefits of a firm producing fuel-efficient cars is represented in the following diagram.
Commercial speech by prohibiting outdoor advertising display : Arizona, enacted a city zoning ordinance limiting commercial speech by prohibiting outdoor advertising display signs – including billboards.

Reviews

Write a Review

Operation Management Questions & Answers

  Organizational structure design influences members behavior

Organizational structure design influences its members’ behavior. you think would result in highly ethical decision-making using the design challenges;

  Constitutes illegal discrimination

Which of the following constitutes illegal discrimination under Title VII of the Civil Rights Act of 1964 by a police agency?:

  Sales volume because customers tend to favor local suppliers

A newly formed firm must decide on a plant location. There are two alternatives under consideration: locate near the major raw materials or locate near the major customers. Locating near the raw materials will result in lower fixed and variable costs..

  Nature grocers mission is to support health

Nature Grocers mission is to support health and well-being of our customers, our employees, communities and our planet by providing high quality natural foods.

  What options are available to the non-breaching party

What options are available to the non-breaching party when the other party to a sales or lease contract repudiates the contract prior to the time for performance?

  Encouraging different work practices-effective techniques

I found to be helpful with fostering creativity in the workplace are being supportive, encouraging different work practices, and using effective techniques.

  What is npv of investment if discount rate given

Net Present value. Your vice president of Management Information Systems informs you that she has researched the possibility of automating your organization's.

  National consumer arbitration program

From a consumer perspective, what is a drawback of the National Consumer Arbitration Program?

  Create a work breakdown structure for an ebook project

Global Green Books Publishing is a successful printing and publishing company in its third year. It has survived bringing on a large new customer and all the challenges of new work that this customer needed in a very short time. Create a Work Breakdo..

  Create a dss component in the form of a spreadsheet

Create a DSS component in the form of a spreadsheet that will be utilized by the corporate Finance Department Manager to reach structured.

  How a company utilized a cost accumulation system

Locate an article on how a company utilized a cost accumulation system.Identify and describe the type of cost accumulation system that was used.

  Operations in europe by opening warehouses

HHMM Inc., a clothing retail firm that operates in the USA is planning to expand its operations in Europe by opening warehouses.

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