Determine the weekly product yield of file cabinets

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Reference no: EM1382359

The Wallace Stationery Company purchases paper from the Seaboard Paper Company. Wallace produces stationery that require 1,415,000 sq. yards of stationery per year. The cost per order for the company is $2,200; the cost of holding 1 yard of paper in inventory is $0.08 per year. Determine the following:

Economic order quantity
Minimum total annual cost
Optimal number of orders per year
Optimal time between orders

The Colonial House Furniture Company manufactures two-drawer oak file cabinets that are sold unassembled through catalogues. The company initiates production of 150 cabinet packages each week. The percentage of good-quality cabinets averages 83% per week, and the percentage of poor-quality cabinets that can be reworked is 60%.

Determine the weekly product yield of file cabinets.

If the company desires a product yield of 145 units per week, what increase in the percentage of good-quality products must result?

Reference no: EM1382359

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