What percent of the product cost should be spent

Assignment Help Operation Management
Reference no: EM131135203

Eli Orchid was finally successful in the introduction of Orchid Relief and is now producing the product on a regular basis. The company has estimated that for its 50g packaging, there is a rather constant demand of 100 packs per week while the company has the capability to produce 230 packs of this dose every week. Every time that the production is stopped and resumed, cleaning of the machines needs to be done estimated at a cost of $500 and takes 2 days. Additionally, the raw material and labour add up to a cost of $15 per pack of Orchid Relief, and unsold packs can be kept in inventory at an annual holding cost rate of 25%. (Assume 52 weeks in a year = 364 days per year.)

Use time-unit of a week in calculation

What are the following:

Demand (D)=

Production rate (P)=

Lead time (L) (time it takes from the time order is placed until production can get started)=

Setup cost per production initiation (Co)=

Per Unit production cost (C)=

Annual Holding rate (H) (what percent of the product's cost should be spent to keep in inventory for one unit of time) =

Holding cost for one unit of the production per unit time (Ch)= H*C =

Reference no: EM131135203

Situation in which cultural conflict may arise

Develop a scenario/situation in which a cultural conflict may arise. Explain what those involved in the conflict may not understand about each other's culture. Explain how you

Explain how key insights from reflective organisation theory

Outline and explain the four aspects of being critical described in Mingers (2000) framework. Explain how key insights from reflective organisation theory perspectives help yo

Initially the rule is caveat venditor

You are planning to buy a new IPOD. Initially the rule is “caveat venditor” - Apple is responsible for defects. Illustrate the economic consequences of a change in legal rules

Least-preferred coworker scale

Think of all the different people with whom you have ever worked¾in jobs, in social clubs, in student projects, or whatever. Next think of the one person with whom you could w

Consumer driven healthcare

To help combat the rising cost of healthcare, the trend of “Consumer Driven Healthcare” started in the early 2000’s. In short, it is a way to put some of the burden of the hea

Professional hacking boot camp

Determine the differences between the two primary courses offered at the intense School, "Professional Hacking Boot Camp" and "Social Engineering in Two Days. Which course is

What initial logistics should you consider

Your city has been selected to host the 2022 Olympics. Your planning firm has secured the contract for this event. It is the contract of a lifetime to plan this size of an eve

Ethics emphasizing two main principles discussed earlier

Explain Aristotlean Ethics emphasizing the two main principles discussed earlier. Also explain the types of justice from the viewpoint of this perspective. Use illustrations a


Write a Review

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