What is the optimum production quantity

Assignment Help Financial Management
Reference no: EM131366894

Arthur Meiners is the production manager of? Wheel-Rite, a small producer of metal parts.? Wheel-Rite supplies? Cal-Tex, a larger assembly? company, with 11,200 wheel bearings each year. This order has been stable for some time. Setup cost for? Wheel-Rite is $39?, and holding cost is ?$0.80 per wheel bearing per year. Wheel-Rite can produce 520 wheel bearings per day.? Cal-Tex is a? just-in-time manufacturer and requires that 46 bearings be shipped to it each business day.

a) What is the optimum production quantity? _______units (round your response to the nearest whole number)

b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?_______ units (round your response to the nearest whole number)

c) How many production runs of wheel bearings will Wheel-Rite have in a year?_______runs (round your response to two decimal places)

d) What is the toal setup plus holding cost for Wheel-Rite? $________ (round your response to two decimal places)

Reference no: EM131366894

Questions Cloud

Present obstacles to transnational bargaining : American jobs have been lost in major industries, such as the automobile, steel, textile, footwear, and consumer electronics, whereas jobs in the aircraft, computers, entertainment, and finance industries have increased. All of the following are pres..
Organization performance management system interface : How does an organization’s performance management system interface with other Human Resource systems? Describe the basics of the most popular rating methods used in your company and why? What method for Performance Appraisal would you implement in yo..
What will be your strategy for recruiting : You are Recruiting Manager for a growing computer hardware company. There are currently 100 employees, broken down as follows: Computer Engineers and Analysts (80 employees), Customer Service, Sales/Marketing (15 employees) and Finance (5 employees)...
Monitor the diameter of engine boring operation : A machine shop owner wishes to monitor the diameter of an engine boring operation where the piston bore should be 4.25”. He obtains 8 samples of 5 and records the following data. Calculate the control limits for X bar and R charts, plot the charts an..
What is the optimum production quantity : Arthur Meiners is the production manager of? Wheel-Rite, a small producer of metal parts.? Wheel-Rite supplies? Cal-Tex, a larger assembly? company, with 11,200 wheel bearings each year. What is the optimum production quantity? How many production ru..
About management decisions and control in global environment : What’s Different About Management Decisions and Control in A Global Environment? What types of political risk would a company entering Cuba face? Provide an example. What is severance pay? List 5 guidelines for designing effective severance plans. Wh..
What are family-friendly benefits : What are family-friendly (work-life) benefits? Name and define 4 types of these benefits. Describe what a Scanlon Plan is and its 5 major elements. Define a Combination Incentive Plan for salespeople. What are the pros and cons of these incentive pla..
Differences between two perspectives in supply chain design : As suggested in the lecture pages for this week, there is a significant difference in measuring the performance of a supply chain from the perspective of the customer and from the perspective of the shipper. Describe the differences between these two..
What is optimal number of days in between any two orders : Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.? Thomas's fastest-moving inventory item has a demand of 6,100 units per year. What is the average inventory if the EO..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the bond price and what is the current yield

Energy Tech company issued an 8% (semi-annual payment) 20 year bond 5 years ago. If the yield of similar bond today is 6%, what is the bond price? What is the current yield?

  What must expected return on market be

A stock has an expected return of 11.5 percent, its beta is .90, and the risk-free rate is 5.75 percent. What must the expected return on the market be?

  Identify appropriate industry specific ratios

Discuss the disadvantages of ratio analysis. You must use questions 1 to 3 and examples from your workplace to substantiate your discussion

  What should be the price of portage bay stock

Portage Bay Enterprise has $2 million in excess cash, no debt, and is expected to have free cash flow of $12 million next year. Its FCF is then expected to grow at a rate of 3% per year forever. If Portage Bay's equity cost of capital is 10% and it h..

  What is the us nominal exchange rate against the euro

What is the U.S. nominal exchange rate against the euro? - What is the European nominal exchange rate against the U.S. dollar?

  Does the sample information support the epas claim

For which values of the sample proportion would the sample data support the EPA's claim, using a 5% significance level?

  Assets-liabilities and equity total revenue and net income

Use the Income Statement and Balance Sheet to determine the changes in: assets, liabilities, and equity total revenue and net income Briefly describe the change from the current and prior years in each of these key areas and determine if the changes ..

  Deciding whether to invest in new machine

Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $325,000 per year. You believe the technology used in the machine has a 10-year life; in other words, no matter when you purchase the machine, it ..

  Assuming that exquisite has a net profit margin

Exquisite Fashion Limited expects its sales to increase 20% next year from its current level of $4.7 million. The company has current assets of $660,000, net fixed assets of $1.5 million, and current liabilities of $462,000. The projected total asset..

  Prestigious investment bank designed a new security

A prestigious investment bank designed a new security that pays a quarterly dividend of $5.00 in perpetuity. The first dividend occurs one quarter from today.

  What are sec financials required to adhere

What are companies registered with the Securities & Exchange Commission (SEC) required to include with their financial reports and what are SEC financials required to adhere to?

  What discount rate should api apply

Albright Properties, Inc. (API) has three divisions:- What discount rate should API apply to the cash flows from "new" projects in the Financial Services Division?

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