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

Evolutipn of operation management, discuss the evolution of operations mana...

discuss the evolution of operations management in the last 10 years

Explain virtualization to support pandora''s business growth, Assess the us...

Assess the use of virtualization to support Pandora's business growth while helping the environment.

Explain organizational structure, Analyze the reason for the type of organi...

Analyze the reason for the type of organizational structure employed by the organization, and identify the key positions that support that organizational structure.

Explain what are the pros and cons of great lakes coating''s, What are the ...

What are the pros and cons of great lakes coating's not having formalized policies regarding employee's behaviour?

When the lrac curve slopes downward over the relevant range, In which of th...

In which of the following situations would consideration of the minimum efficient scale of operation suggest that the market should be served by a large number of small firms to mi

Economic feasibility & behavioural feasibility - job design, Economic Feasi...

Economic Feasibility and Behavioural Feasibility Economic Feasibility The value added by the job should exceed, by an acceptable margin, the costs incurred in carrying o

Explain what is the role of a cio in today''s global business, 1. What is t...

1. What is the role of a CIO in today's global business environment? 2. Dr. Carr presents a good argument in the "IT doesn't matter" reading. Present your view of Carr's central

Availability of raw materials , Factors responsible for plant location choi...

Factors responsible for plant location choice - Availability of Raw Materials Areas where industrial raw materials are easily available obviously exert greater pull on locatio

Describe future of global air transportation, What do you predict for the f...

What do you predict for the future of global air transportation?

What must be the amount of baruch''s annual contributions, Payment = $4,000...

Payment = $4,000 interest rate =10% number of periods = 20 Find fva Stressed and penniless after months of day trading, Mr. Baruch decides to invest his savings into a conservative

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