Determine the economic production quantity, Operation Management

Assignment Help:

Water Wheelies manufactures high-pressure sprinkler heads. These are produced periodically at a rate of 20,000 per month. Demand is steady at 15,000 per month. Each production run has a set-up cost of $120. Variable direct production costs are $6.00 for labour, $2.00 for parts, and $4.00 for raw materials. Water Wheelies uses an annual inventory holding cost of 20% of the unit cost for carrying the unit for one year. a. Determine the optimal production quantity during each production run. b. Determine the annual holding cost, set-up cost and total cost. c. Determine the maximum inventory. d. Determine the cycle time between two production runs in days. Assume 250 days per year. In each cycle compute the number of days the production facility is busy (uptime) and the number of days the production facility is idle (downtime). e. Water Wheelies can double its production rate by using a new technology, but the set-up cost per production run will also double. Determine the economic production quantity and the annual holding and set-up costs.


Related Discussions:- Determine the economic production quantity

Explain what laws are applicable to this fact pattern, Marie wrote Ray a ch...

Marie wrote Ray a check for landscaping her front lawn. Marie paid Ray in advance. The check was dated for five days later than the date of issuance. Ray was supposed to start land

Explain what will be the average tardiness of these orders, A single machin...

A single machine work center has five jobs assigned to it. They are labeled, in the order of their arrival in the shop, as jobs A, B, C, D and E. The work center may work on only o

Explain the building blocks of competitive advantage, Discuss the building ...

Discuss the building blocks of competitive advantage and the role a manager should play in achieving this advantage.

Explain what is the overall reliability of the call center, The service cen...

The service center for a brokerage company provides three functions to callers: account status, order confirmations, and stock quotes. The reliability was measured for each of thes

Business ethics and corporate social responsibility, Explain the relationsh...

Explain the relationship among 'Business Ethics' and 'Corporate Social Responsibility' Ethics may be viewed as a set of moral principles that guide behaviour, based on what is

Explain a difference between ethics and business ethics, Is there a differe...

Is there a difference between ethics and business ethics?

Explain about the term flexible firm, Explain about the term flexible firm....

Explain about the term flexible firm. Flexible firm: By John Atkinson the conception of the “flexible firm” was proposed, he recognised about organisations will need grea

Describe wholesale pricing, What provision of the Telecommunications Act of...

What provision of the Telecommunications Act of 1996 prohibits ILECs from requiring customers to dial an extra digit when calling someone who subscribes to a competitor's local pho

Define the cost of equity as a check on the capm calculation, Was there som...

Was there some other way to estimate the cost of equity as a check on the CAPM calculation?

Write Your Message!

Captcha
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