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A company that makes kitchen faucets has found that demand for its model faucet is fairly constant at the rate of 100,000 units per year. Each model of faucet is made using the same equipment, and it costs $100 in lost production and scrap every time a change is made from producing one model of faucet to another. The cost of materials and labor in each faucet is $40, and the inventory holding cost is 25 percent of this per unit per year. If faucets are produced at the rate of 1,000 per day.
a. How many should be produced in each production run based on 250 working days per year?
b. What is the maximum inventory level?
c. How many days does it take to produce in a round?
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Discuss the three major reasons why companies adopt total quality. Also, discuss the initial key steps are involved in the adoption process.
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1 To ensure that its supply chain can handle a surge in demand, MitiTech should: a. hire additional manufacturing employees b. modify its design to speed up production time
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A hamburger factory produces 40,000 hamburgers each week. The equipment used costs $5,000 and will remain productive for 4 years. The labor cost per year is $9,500. a. What is the
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