Explain what is the maximum inventory level, Operation Management

Assignment Help:

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?


Related Discussions:- Explain what is the maximum inventory level

Explain competitive strategy relate to value chain structure, How does comp...

How does competitive strategy relate to value chain structure?

Explain dual chains of command can create more problems, Some people argue ...

Some people argue that the matrix structure should be adopted only as a last resort because the dual chains of command can create more problems than they solve. Discuss. Do you agr

Share the data and understanding of the data, •Using the Internet, research...

•Using the Internet, research statistics using PollingReport.com. •Select a topic from either the "In the News" section or the "Issues" section. •Study the data that the Website pr

Explain cutting edge or don''t have a lot of precedents, In what ways do yo...

In what ways do you think that scoping projects that are cutting edge or don't have a lot of precedents is a problem, and how do you think a project manager can address this

Explain and appreciate the challenges faced by the cio, Imagine an intervie...

Imagine an interview with a company CIO or MIS Director/Manager, perhaps even in your own company. Construct a short list of questions that you would ask. The goal is to understand

Explain market presence to multiple international venues, Before you answer...

Before you answer this discussion question do a little Internet research. Identify and discuss a company that has had great success in expanding its market presence to multiple int

Explain what qualities do you think supervisors take, What qualities do you...

What qualities do you think supervisors take into consideration when choosing whom to give a promotion to at work?

What are the pros and cons of flexible schedules for staff, What are the pr...

What are the pros and cons of flexible schedules from an employee's perspective?

Explain briefly how a leader can recognize regressive cycle, Describe brief...

Describe briefly how a leader can recognize a regressive cycle and what should the leader's response be?

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