What is the optimum production quantity

Assignment Help Financial Management

Reference no: EM131366894

Arthur Meiners is the production manager of? Wheel-Rite, a small producer of metal parts.? Wheel-Rite supplies? Cal-Tex, a larger assembly? company, with 11,200 wheel bearings each year. This order has been stable for some time. Setup cost for? Wheel-Rite is $39?, and holding cost is ?$0.80 per wheel bearing per year. Wheel-Rite can produce 520 wheel bearings per day.? Cal-Tex is a? just-in-time manufacturer and requires that 46 bearings be shipped to it each business day.

a) What is the optimum production quantity? _______units (round your response to the nearest whole number)

b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?_______ units (round your response to the nearest whole number)

c) How many production runs of wheel bearings will Wheel-Rite have in a year?_______runs (round your response to two decimal places)

d) What is the toal setup plus holding cost for Wheel-Rite? $________ (round your response to two decimal places)

Reference no: EM131366894

Questions Cloud

Present obstacles to transnational bargaining : American jobs have been lost in major industries, such as the automobile, steel, textile, footwear, and consumer electronics, whereas jobs in the aircraft, computers, entertainment, and finance industries have increased. All of the following are pres..

Organization performance management system interface : How does an organization’s performance management system interface with other Human Resource systems? Describe the basics of the most popular rating methods used in your company and why? What method for Performance Appraisal would you implement in yo..

What will be your strategy for recruiting : You are Recruiting Manager for a growing computer hardware company. There are currently 100 employees, broken down as follows: Computer Engineers and Analysts (80 employees), Customer Service, Sales/Marketing (15 employees) and Finance (5 employees)...

Monitor the diameter of engine boring operation : A machine shop owner wishes to monitor the diameter of an engine boring operation where the piston bore should be 4.25”. He obtains 8 samples of 5 and records the following data. Calculate the control limits for X bar and R charts, plot the charts an..

What is the optimum production quantity : Arthur Meiners is the production manager of? Wheel-Rite, a small producer of metal parts.? Wheel-Rite supplies? Cal-Tex, a larger assembly? company, with 11,200 wheel bearings each year. What is the optimum production quantity? How many production ru..

About management decisions and control in global environment : What’s Different About Management Decisions and Control in A Global Environment? What types of political risk would a company entering Cuba face? Provide an example. What is severance pay? List 5 guidelines for designing effective severance plans. Wh..

What are family-friendly benefits : What are family-friendly (work-life) benefits? Name and define 4 types of these benefits. Describe what a Scanlon Plan is and its 5 major elements. Define a Combination Incentive Plan for salespeople. What are the pros and cons of these incentive pla..

Differences between two perspectives in supply chain design : As suggested in the lecture pages for this week, there is a significant difference in measuring the performance of a supply chain from the perspective of the customer and from the perspective of the shipper. Describe the differences between these two..

What is optimal number of days in between any two orders : Thomas Kratzer is the purchasing manager for the headquarters of a large insurance company chain with a central inventory operation.? Thomas's fastest-moving inventory item has a demand of 6,100 units per year. What is the average inventory if the EO..

User Account

All Pages