Synthetic fiber used for making furniture upholstery

Assignment Help Operation Management

Reference no: EM131176349

PlasFib is a manufacturer of synthetic fiber used for making furniture upholstery. When it is running, the line produces fiber at the rate of 100 pounds per hour. The fiber is sold constantly at 30.000 pounds per year. Each pound of fiber costs $5 and PlasFib uses an interest rate of 20 percent per year for holding cost. The setup cost for producing a batch is S200. What is the batch size that PlasFib should produce? How many days of demand does this translate into? (Assume that 1 year = 52 weeks and 1 week = 5 working days = 40 working hours).

Reference no: EM131176349

Questions Cloud

Which variables are most important in terms of their effects : Upscale Toddlers, Inc., manufactures children’s clothing, including such accessories as socks and belts. The company has been in business since 1955, mainly supplying private label merchandise to large department stores. Which variables are most impo..

Project affected by international cultural or ethics issues : Discuss any additional culture and ethics considerations that one has to take into account in dealing with international projects. Based on personal knowledge, or experience, or relevant case studies describe a project affected by international cultu..

Business communicators and management experts : Radio Shack infamously fired 400 of its employees by e-mail a few years ago. More recently, the CEO of electric-car manufacturer Tesla, Elon Musk, used his blog to announce layoffs. Why do most business communicators and management experts frown upon..

Determine the risk premium for each individual : Three individuals each hold a ticket for a lottery that will pay $100 with probability 0.2 and $10 with probability 0.8. Their utility functions for the monetary amount x may be described as follows: Determine the risk premium for each individual. Wh..

Synthetic fiber used for making furniture upholstery : PlasFib is a manufacturer of synthetic fiber used for making furniture upholstery. When it is running, the line produces fiber at the rate of 100 pounds per hour. The fiber is sold constantly at 30.000 pounds per year. Each pound of fiber costs $5 an..

General types of information management systems : General types of information management systems include: (1) Office Automation System, (2) Communication System, (3) Transaction Processing System (TPS), (4) Management Information System (MIS) and Executive Information System (EIS), (5) Decision Sup..

Struggled with the decision to offer violent online games : The CanGo managers engaged in such a debate as they struggled with the decision to offer violent online games as part of their product mix. Whatever decision the managers reach will depend not only on their business judgment, but on their personal ph..

Market position in the minds of her target customers : How might Calhoun’s decision to keep production in the United States help solidify her market position in the minds of her target customers? If Red Ants Pants had investors looking for a quick return, how might that in?uence Calhoun’s decision to con..

Starting new ventures with limited resources : How can CanGo continually starting new ventures. In order to move ahead on some of the new ventures that are key to CanGo's future, some of CanGo's ongoing projects and operations will need to be de-emphasized and resources re-directed. What will be ..

User Account

All Pages