What is the recommended cycle time

Assignment Help Operation Management

Reference no: EM132219193

Gardening Magic produces quality gardening tools for the home gardener. Its production capacity for a certain gardening tool is 16,000 units. Gardening Magic estimates the annual demand for this tool at 6,000 units. The cost to set up the production line is $2,345, and the annual holding cost is $20 per unit. Currently, Gardening Magic produces 500 of these tools each month.

A. What is the optimal production lot size?

B. How many production runs should be made each year? What is the recommended cycle time?

C. Would you recommend changing the current production lot size from the monthly 500-unit run? Why or why not?

D. What is the projected savings of your recommendations from Question C in dollars? And the projected savings as a percentage?

USE MICROSOFT EXCEL AND SHOW FORMULAS

Reference no: EM132219193

Questions Cloud

Several different competitors who sell similar product : Choose a product that you have purchased in the last month and explore several different competitors who sell a similar product.

Who should do prioritization of the project risks : Assume you have just been assigned to a project risk team composed of five members. Who should do the prioritization of the project risks?

What type of content is the best for driving revenue : What type of content is the best for driving revenue? What types of content are best for driving awareness?

Organizational change and have adopted feminist perspective : You are interested in organizational change and have adopted a feminist perspective.

What is the recommended cycle time : What is the optimal production lot size? How many production runs should be made each year? What is the recommended cycle time?

Who should do the prioritization of the project risks : Who should do the prioritization of the project risks?

Strategically speaking how would you characterize : Strategically speaking how would you characterize on message that combination spinoff and organizational redesign are supposed to send investors and analysts

Operations contribution to new product development team : What is Operations’ contribution to the New Product Development Team? Which NPD phase includes your final opportunity to make a go/no-go decision?

System management in total quality management : Reflection essay about System Management in Total Quality Management.

User Account

All Pages