Find out the economic run size and maximum inventory

Assignment Help Operation Management

Reference no: EM1375875

Q. A shop that makes candles offers a scented candle, which has a monthly Demand of 360 boxes. Candles can be produced at a rate of 36 boxes per day. The shop operates 20 days a month. Suppose that Demand is uniform throughout the month. Setup cost is $60 for a run also holding cost is $2 per box on a monthly basis.

Find out the following:
(A) the economic run size
(B) the maximum inventory
(C) the number of days in a run

The daily usage rate (u) is 18 boxes. The daily production rate (p) is 36 boxes.

Reference no: EM1375875

Questions Cloud

Illustrate what is dotcom optimal order quantity : Stock is received 12 working days after an order has been placed. No backordering is allowed. Suppose 325 working days a yr. Illustrate what is Dotcom optimal order quantity.

Evaluate the pros also cons of course of action to your ceo : Evaluate the pros also cons of each alternative also suggest a course of action to your CEO.

Illustrate what is the disney difference : Illustrate what is the Disney Difference also Elucidate how will it affect the organizations corporate, competitive also functional strategies.

Explain three basic trade-offs : If Microeconomics is considered to be study of scarce resources. In which customers must make allocation decisions. These 3-basic trade offs include which products or services are to be manufactured

Find out the economic run size and maximum inventory : Candles can be produced at a rate of 36 boxes per day. The shop operates 20 days a month. Suppose that Demand is uniform throughout the month. Setup cost is $60 for a run also holding cost is $2 per box on a monthly basis.

Find replacement chips for its product lines : The task is unpleasant because the firm has not been able to find replacement chips for its product lines. Here is the Demand over the past 12 quarters.

Can julia delete one of the financial alternatives : Can Julia delete one of the financial alternatives also still offer investment choices for both risk seekers also risk avoiders.

Elucidate how the use of akamai help the nba compete market : Using porters competitive forces model analyze the NBA market situation. Elucidate how the use of akamai help the NBA compete this market.

Differences between micoeconomics and maroeconomic : As an economist you have been tasked to address a meeting of a company on international professional to describe the differences between micoeconomics and maroeconomic and give real world example.

User Account

All Pages