Determine the cycle time between two production runs

Assignment Help Operation Management
Reference no: EM13107340

Water Wheelies manufactures high-pressure sprinkler heads. These are produced periodically at a rate of 20,000 per month. Demand is steady at 15,000 per month. Each production run has a set-up cost of $120. Variable direct production costs are $6.00 for labour, $2.00 for parts, and $4.00 for raw materials. Water Wheelies uses an annual inventory holding cost of 20% of the unit cost for carrying the unit for one year. a. Determine the optimal production quantity during each production run. b. Determine the annual holding cost, set-up cost and total cost. c. Determine the maximum inventory. d. Determine the cycle time between two production runs in days. Assume 250 days per year. In each cycle compute the number of days the production facility is busy (uptime) and the number of days the production facility is idle (downtime). e. Water Wheelies can double its production rate by using a new technology, but the set-up cost per production run will also double. Determine the economic production quantity and the annual holding and set-up costs.

Reference no: EM13107340

Questions Cloud

Question on hypothesis testing problems and t test : A sample of 64 observations is selected from a normal population. The sample mean is 215, and the sample standard deviation is 15. Conduct the following test of hypothesis using the .03 significance level.
Discuss an ineffective health care policy : Discuss an ineffective health-care policy that you personally experienced in your practice, and describe the issues that you feel made it unsuccessful.
By what percentage does the period differ from the period : A very light rigid rod with a length of 0.500 m extends straight out from one end of a meter stick. The stick is suspended from a pivot at the far end of the rod and is set into oscillation.
Factors influencing value of t-statistic : Several factors influence the value obtained for a t statistic. Some factors affect the numerator of the t statistic and others influence the size of estimated standard error in the denominator.
Determine the cycle time between two production runs : Water Wheelies manufactures high-pressure sprinkler heads. These are produced periodically at a rate of 20,000 per month. Demand is steady at 15,000 per month.
Statistical null and alternative hypotheses : Clearly identify the independent and dependent variables you would study. Determine whether an independent-samples or related-samples t test is most appropriate and why. Generate the statistical null and alternative hypotheses.
Identify whether or not gawker media acted socially : Identify whether or not gawker media acted socially responsible when it reported the security breach before apple and AT & T responded to the public?
Find the shortest wavelength of x-rays produced in lamp : In the typical X-ray lamp. The electrons are accelearated in the potential difference of 10000V before hitting the water cooled electrode. Find the shortest wavelength of X-rays produced in this lamp.
Obtain a short-term loan to purchase materials : Identify three good investment opportunities for the organization. Obtain a short-term loan to purchase materials. Assess the level of inventory to be kept on hand.

Reviews

Write a Review

Operation Management Questions & Answers

  What order quantity minimizes total annual inventory cost

They sell 100 printers per month. The manufacturer has offered the following price schedule. What order quantity minimizes total annual inventory cost?

  Managers understand that uncertainties are addressed

Managers understand that uncertainties are addressed at the specific level of uncertainty, the particular source from which it originates and the specific practices that are used best to resolve these uncertainties.

  Instrument for value by blank indorsement back to jess

In need of cash, Adrien transfers the instrument for value by blank indorsement back to Jess. When told that Ben has left the country, Jess strikes out Ben's indorsement.

  Explain how many seats should the airline reserve for class

The airline estimates which the demand of full fare customers is between 51 also 100, all numbers equally likely. To maximize the expected revenue, should the airline sell one more discount ticket. Explain how many seats should the airline reserve fo..

  Estimating the delivery charge

Timely Transport provides local delivery service for a number of downtown and suburban businesses. Delivery charges are based on distance and weight involved for each delivery: 30 cents per pound and 10 cents per mile. Also, there is a $20 handling f..

  Describe managerial skills and behaviors

Describe managerial skills and behaviors that would be required to manage effectively in a functional department. Are these skills and behaviors different from those required in a product department?

  Linear programming concepts-shadow price and sensitivity

This solution describes the concepts of shadow price and maximization problem, differences between graphical and computer-based methods of solving LP problems differ, and sensitivity analysis in decision making process.

  What is the productivity measure

What is the productivity measure of units of output per dollar of input averaged over the 3-year period?

  Calculate new mrp to improve the base mrp

Space Age Furniture Company The Space Age Furniture Company manufactures tables and cabinets to hold microwave ovens and portable televisions.

  Explain viral marketing

Do you think a similar strategy with a viral marketing campaign on the internet would appeal to the target market for diet coke plus?

  Determine the percentage increase in productivity

Lake Charles Seafood makes 500 wooden packing boxes for fresh seafood per day, working in two 10-hour shifts. Due to increased demand, plant managers have decided to operate three 8-hour shifts instead.

  Illustrate what is janet management style is based on

Finally, she gave account to Paula, a very creative, efficient writer who has had high sales results with her last 3 clients' products. Illustrate what is Janet's management style is based on.

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