Determine how often to make a production run

Reference no: EM131105024

Suppose that the demand for a product is 30 units per month and the items are withdrawn at a constant rate. The setup cost each time a production run is undertaken to replenish inventory is $15. The production cost is $1 per item, and the inventory holding cost is $0.30 per item per month.

(a) Assuming shortages are not allowed, determine how often to make a production run and what size it should be.

(b) If shortages are allowed but cost $3 per item per month, determine how often to make a production run and what size it should be.

Reference no: EM131105024

Questions Cloud

Optimize the amplifier matching networks : Use the amplifier of Example 12.4 in a balanced configuration operating from 3 to 5 GHz. Use quadrature hybrids, and plot the gain and return loss over this frequency range. Using microwave CAD software, optimize the amplifier matching networks to..

The setup cost for placing an order to replenish inventory : The demand for a product is 600 units per week, and the items are withdrawn at a constant rate. The setup cost for placing an order to replenish inventory is $25. The unit cost of each item is $3, and the inventory holding cost is $0.05 per item ..

Calculate the mean and the variance of this random variable : Calculate the mean and the variance of this random variable. Change the mean of this random variable to .05 by subtracting an appropriate constant from ?x. That is, calculate ?y = ?x - μ Such that ?y has mean .05. Has the variance changed?

Determine the range for which each alternative is best : Determine the range for which each alternative is best. Compute the balance delay for each rule. Which one yields the better set of assignments in this instance? What is the current capacity of the entire process?

Determine how often to make a production run : Suppose that the demand for a product is 30 units per month and the items are withdrawn at a constant rate. The setup cost each time a production run is undertaken to replenish inventory is $15. The production cost is $1 per item, and the inventor..

What is the capital intensity ratio : A company has an equity multiplier of 1.24, profit margin of 6.7% and ROE of 15.2%. What is the capital intensity ratio?

Using the seasonally adjusted call volume : Mark Lawrence-the man with two first names-has been pursuing a vision for more than two years. This pursuit began when he became frustrated in his role as director of human resources at Cutting Edge, a large company manufacturing computers and com..

Design the input and output matching circuits : Design the input and output matching circuits using the given large-signal reflection coefficients. Compute the required input power level.

Ow would you change the definition of xt to make zt : Where Xt is an exponential Wiener process:(a) Calculate the expected value of the increment dZ(t). (b) Is Zt a martingale? (c) Calculate E[Zt]. How would you change the definition of Xt to make Zt a martingale?

User Account

All Pages