Find the minimum yearly total system cost when shortages

Assignment Help Operation Management
Reference no: EM13901105

A manufactured product has a constant monthly demand of 1,200 units. The machine used to manufacture this product has a constant yearly production rate of 18,000 units and a setup cost of $120. The unit variable production cost is $100 and the annual inventory carrying cost is 0.1.

1- Find the minimum yearly total system cost when shortages are not allowed.

The production manager would like now to allow for shortages provided that the maximum stockouts will remain equal to one sixth (1/6) of the minimum batch size.  Find the unit yearly shortage cost. What is the minimum inventory cost in this case?

Reference no: EM13901105

Questions Cloud

Depict three elements that may influence the monetary : Depict three elements that may influence the monetary consequences of a firm directing business globally which could at last effect the execution bond account?
Problem as a linear program in standard form : Moroney’s Cycles sells, repairs, and customizes motorcycles. They stock Harley Davidson, Yamaha Custom, and also have a limited number of KTM Motocross Bikes available for sale.  What is the breakdown of Harleys, Yamahas, and KTMs that should be boug..
Congress and state legislatures exercise : What are the two principal ways in which Congress and state legislatures exercise oversight of administrative agencies?  -In what ways does the budgeting process lend itself to political control of administrative policymaking by the executive and leg..
What ratio of electric force to magnetic force experienced : What is the total force experienced by the 800-nC charge? What is the ratio of electric force to magnetic force experienced by the 400-nC charge? What is the total force acting on the 400-nC charge? Is the total force acting on the two charges the..
Find the minimum yearly total system cost when shortages : A manufactured product has a constant monthly demand of 1,200 units. The machine used to manufacture this product has a constant yearly production rate of 18,000 units and a setup cost of $120. The unit variable production cost is $100 and the annual..
What are the differences between facts and inferences : For this reflection activity, pick five of the following seven questions to respond to with examples for each. These are foundational concepts that will help you be successful in this course. What is the relationship between careful observation and c..
Life recently or learned the lesson the hard way : Read the five "useful rules" to follow on p. 94 in Mayfield's text. Foreach rule, share an example of how you implemented the rule in your life recently OR learned the lesson the hard way.  Don’t believe any facts given to you unless sufficient infor..
Determine the magnetic flux density at the center of loop : A long solenoid has 2 turns per millimeter. Determine the current in its windings needed to produce a magnetic field of 0.5 T in its interior.
Find the first two iterations of the jacobi method : Find the spectral radius for each matrix in question 5. Find the l2 norm for the matrices in question 5. Find the first two iterations of the Jacobi method for the following linear system, using x(0) = 0:

Reviews

Write a Review

Operation Management Questions & Answers

  Manage the communication and operation of a virtual team

What are the challenges teams face when part of a virtual team? As a leader, how can you manage the communication and operation of a virtual team?

  Elucidate what is the optimal solution

Elucidate what is the optimal solution. describe how many workers should be assigned to every type of machine. Every product needs the subsequent processing times (in hours) on every of 3 machines.

  Restoration of the environment as part of the projects

The Connolly Communications Company, Inc. is looking for a construction company to lay 18 miles of telephone cable as part of its new factory in the country of Mishkalon. Spaulding is a leader in the sustainability area, and has received awards for i..

  Traditional Action Research-New Action Research change Model

The Traditional Action Research Model and the New Action Research Change Model are visually different. An example of a difference between the elements of the two models models include(s):

  Discuss some of personal characteristics of project leaders

Discuss the importance of negotiations between project and functional managers.

  What is the break-even point for each location

Jimbo Elrod has obtained fixed and unit variable cost in formation of four potential locations for his professional wrestling school and summarized it in the table below. What is the break-even point for each location if Jimbo decides to charge $22 p..

  Illustrate what is optimal order quantity

Illustrate what is optimal order quantity. Illustrate what is annual holding cost. Illustrate what is annual ordering (setup) cost. Illustrate what are annual costs of silverware itself with an optimal order quantity.

  Capacity implications of the marketing campaign

What are the capacity implications of the marketing campaign (assume no learning)?

  Briefly explain endorsements and get-out-the-vote drives

Briefly explain endorsements and get-out-the-vote drives. List the factors that the NLRB considers to determine a bargaining unit.

  Which schedule finishes sooner

The table below highlights the time taken in hours for (1) cutting and sewing and (2) delivery of each of the suits. Which schedule finishes sooner: First-come, first-served (123) or a schedule using Johnson's rule?

  What are the five categories of supply chain processes

What are the five categories of supply chain processes? Explain each category.

  Focus on the cost and schedule performance of the project

Produce a series of EVM reports from MS project that illustrates your project's performance. Note: Your reports should focus on the cost and schedule performance of the project.

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