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Q. 1) A manager must decide Elucidate how many machines of a certain type to purchase. Each machine can process 100 customers per day. One machine will result in a fixed cost of $2,000 per day, while two machines will result in a fixed cost of $3,800 per day. Variable costs will be $20 per customer also revenue will be $45 per customer.
a. Find out the break-even point for each range.
b. If estimated Demand is 90 to 120 customers per day, elucidate how many machines should be purchased?
The firm currently has an end of period inventory on hand of 90 units and a scheduled receipt of 120 units is due in week. Compute the order point. depict the use requirements in a time phased order point format for a 10 week period.
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