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

During the analysis of a process that was evaluated, What are some of the p...

What are some of the possible explanations for not finding any assignable causes

Explain what do your contingency plan, What do your contingency plan in cas...

What do your contingency plan in case your plan of action doesn't work?

Explain inventory tracking systems, Bill of Materials are kept current with...

Bill of Materials are kept current with changes using: a) Inventory Tracking Systems b) Engineering Change Order Systems c) Master Scheduling Systems d) Capacity Planni

Explain system for evaluating the productivity, As the administrative manag...

As the administrative manager in a law office, you have been asked to develop a system for evaluating the productivity of the 15 lawyers in the office. What difficulties are you go

Explain the need for management to motivate their employees, Problem 1: ...

Problem 1: Team working is gaining importance in modern organisations. Do you agree that all members of an organisation could be expected to be team players? Discuss with exa

What are major and minor decisions, What are major and minor decisions? ...

What are major and minor decisions? Decision with regard to financial outlay can be minor or major. A decision concerned to the purchase of a CNC machine costing several lakhs

Define what would the average inventory be for this lot size, A chemical fi...

A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 30 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100

Describe the use of strike replacements, Itemize and discuss the different ...

Itemize and discuss the different types of strikes and lock outs, their roles in labour relations and their legal restrictions in private and public sectors. Discuss the use of str

How do we link strategic and operational change, 1. How do we link strategi...

1. How do we link strategic and operational change?  Answer: Hambrick and Cannella present a 5-step approach:  1. obtain broad inputs at the formulation stage  2. assess o

Explain is the petterson operations successful, Carrington inc is an intern...

Carrington inc is an international company engaged in the production and distribution of pharmaceutical is the petterson operations successful? To the degree that it can be judged

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