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 task environment and general environment, The relationship between ...

The relationship between a task environment and general environment are best described as? 1. one way system: changes in the task environment affect the general environment but cha

Define the worshiping of a deity is required, the worshiping of a deity is ...

the worshiping of a deity is required in order for a belief to be considered a religion.

Explain technologies to keep the organization competitive, Select an organi...

Select an organization. Who are the stakeholders of your selected organization? How would the stakeholders be affected by the failure of the organization to keep up with new techno

Toyota Producttion assignment., Exercise 2: Use of a Grid Analysis (Weighte...

Exercise 2: Use of a Grid Analysis (Weighted Scoring Model) to Help Make the North American Plant Location Decision for the RX 330 This exercise illustrates how when deciding am

Explain why do resource constraints affect project results, Explain work br...

Explain work breakdown structure. Why do resource constraints affect project results?

Describe ethical to reduce the number of employees, 1. Based on GM's ...

1. Based on GM's current condition, do you think it is ethical to reduce the number of employees? Why or why not?

Briefly describe the four different approaches to social, Briefly explain t...

Briefly explain the four different approaches to social responsibility that an organization can adopt.

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