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A manufacturer of fractional horsepower motors for use in industrial sweepers and floor polishers produces its own wiring arnesses. These wiring harnesses are used in final assembly at the rate of 100 per day for 250 working days per year. It costs $250 to start up the wiring harness production. Production is at the rate of 300 per day when operating. The standard cost of a wiring harness is $75, and the company's inventory carrying cost is 25 percent per year.
What should the production run quantity be?How long should each production run cycle be?How many times per year should the part be produced?
Operations Management is about a book review. Title of the book is "Goal". This book has been written by Dr. Eliyahu Goldartt. The book has been appreciated by many as one of those books which offers an insight into the operations and strategic capac..
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Develop a report for Figi Fabricating that will address the question of whether the company should continue to purchase the part from the supplier or begin to produce the part itself.
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