What is the optimal size of the production run

Assignment Help Operation Management

Reference no: EM131375064

Radovilsky Manufacturing Company, in Hayward. California. makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders fo about 11,600 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $48. The cost of each light is $1.05 The holding cost is $0.10 per light per year.

a) What is the optimal size of the production run?

b) What is the average holding cost per year?

c) What is the average setup cot per year?

d) What is the total cost per year, including the cost of the lights?

Reference no: EM131375064

Questions Cloud

Highlighting benefits of production and control processes : How do I write a memo to new employees highlighting the benefits of production and control processes At Nissan, with an overview of the importance of productivity, quality, and relationship between the two concepts?

The initial inventory has no holding cost in first period : Ram? Roy's firm has developed the following? supply, demand,? cost, and inventory data: Assume that the initial inventory has no holding cost in the first period and backorders are not permitted. Allocating production capacity to meet demand at a min..

Why is the knowledge of political environment important : Why is the knowledge of the political environment important when entering a foreign market? How do domestic companies identify the appropriate partners when they need to establish a global supply chain? What do the marketers need to do to adapt domes..

Making authority within a product differentiation strategy : Discuss the similarities and differences of the organizational structures used by firms pursuing a cost leadership and a product differentiation strategy and discuss the importance of broad decision making authority within a product differentiation s..

What is the optimal size of the production run : Radovilsky Manufacturing Company, in Hayward. California. makes flashing lights for toys. The company operates its production facility 300 days per year. What is the optimal size of the production run? What is the average holding cost per year? What ..

Sufficiently pressing to direct person to seek satisfaction : Leona purchased two bottles of wine from vineyards in Australia. When asked her opinion of the wine, she said the burgundy wine tasted like alcoholic grape juice, but the Chablis had a crisp taste that she really enjoyed. These statements were made d..

In MS Project the use of doing Picture capture : In MS Project the use of doing a Picture capture and then inserting the GIF into another document. Describe the pro's and con's behind using a GIF that you would copy and paste into another program?

Social media facilitate engaging with online communities : Social media facilitate engaging with online communities to generate exposure, opportunities, and sales. There are some major benefits that firms obtain by using social media in their international marketing activities. Please identify two marketing ..

What types of provisions you would put into your leases : If you are the owner of a commercial real estate, and now you want to sign leases with different tenants, such as the office, manufacturing and the retail. So, in order to protect you against inflation and unforeseen costs, what types of provisions y..

User Account

All Pages