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A retail outlet has its own production facility for producing denim cloth. The ordering cost ($150) is the cost of setting up the production process to make the denim cloth. The carrying cost is $0.75 per yard and the demand is 10,000 yards per year. The production facility operates the same days as the retail store is open (i.e. 311 days) and produces 150 yards of the denim cloth per day. Determine
a) The optimal order size
b) The total inventory cost
c) The length of time to receive an order
d) The number of orders per year
e) The maximum inventory level
The product-process matrix used to analyze manufacturing operations brings together the elements of: a) Customization, volume, and process. b) Volume, process, and intensity.
ABC Co manufactures a subcomponent at the rate of 400 per day when required. Its annual demand for this item is 50000 unites. Assume 250 working days per year. Holding cost is $10
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