What is the optimal size of the production run

Assignment Help Operation Management

Reference no: EM132231110

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,000 flashing lights per year and has the capability of producing 95 per day. Setting up the light production cast $51. The cost of each light is $1.00 The holding cost is $0.15 per light per year.

What is the optimal size of the production run? What is the average holding cost per year? What is the average setup cost per year? What is the total cost per year, including the cost of the lights?

Reference no: EM132231110

Questions Cloud

The faster and cheaper process of arbitration : Would you be upset? Or would you be relieved to go through the faster and cheaper process of arbitration?

Poorly designed electronic slideshow can detract : A poorly designed electronic slideshow can detract from the effectiveness of your presentation.

What advantages and challenges does ge have : What advantages and challenges does GE have in pursuing this internal staffing strategy? Why is it able to be more effective in this approach than other firms.

What is meant by uncertainty in the external environment : What is meant by uncertainty in the external environment? Describe the term “knowledge worker” and why it is important to management today.

What is the optimal size of the production run : What is the optimal size of the production run? What is the average holding cost per year?

Remaining decision strategies such as process management : hoose one of the remaining decision strategies such as process management, quality management, location management,capacity management, layout management, etc.

Why is strategic management important : Why is Strategic Management important? What is Blue Ocean Theory?

Would newly rich chinese customers engage in this purchasing : MGT-321 If China will go from 17 million to 200 million middle- and upper-income people by the early 2020s, would the scenario presented by Best Buy.

Annual cost of the silverware with an optimal order quantity : What is the optimum ordering quantity? What is the annual holding cost? What are the annual cost of the silverware with an optimal order quantity?

User Account

All Pages