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 different forecasting techniques, An analyst must decide between tw...

An analyst must decide between two different forecasting techniques for weekly sales of roller blades: a linear trend equation and the naive approach. The linear trend equation is

General questions, wanna know how long it takes to receive a paper

wanna know how long it takes to receive a paper

Explain dogs learn to salivate at the ringing of a bell, which of the follo...

which of the following statement is correct concern condition/1.operant condition was polarize by ivanpavlov/2.classical condition is extension of operant condition/3.in operant co

Explain disadvantages of division of labour, Explain disadvantages of Divis...

Explain disadvantages of Division of Labour. (i) Division of labour provide rise to loss of craftsmanship, all workers become Machine -minders and nothing else. (ii) Along w

Application of transportation models, Application of Transportation Models:...

Application of Transportation Models: 1. Transportation  Management  solution allow  importers exporters  and logistics providers to  manage the spiralling costs associated wi

Compute the productivity in sales revenue/labour expense, Sailmaster makes ...

Sailmaster makes high-performance sails for competitive windsurfers. Below is information about the inputs and outputs for one model, the Windy 2000. Units sold 1,217 Sale price ea

Explain how do projects drive accountability, How do projects drive "accoun...

How do projects drive "accountability"? Why would managers fear this particular terminology?

Explain barriers to successful communication, Explain barriers to successfu...

Explain barriers to successful communication. Barriers to Successful Communication: A barrier to successful communication does not allow the transmission of correct and full

Value driven approach , Value Driven Approach The second approach is a...

Value Driven Approach The second approach is a value drive approach to operations management. The value driven approach starts by recognizing that a business is a set of proce

Explain what are the tradeoffs between profitability, What are the tradeoff...

What are the tradeoffs between profitability, risk, and control that should be considered when choosing between debt and equity?

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