In what quantity should these cookies be produced

Assignment Help Operation Management

Reference no: EM13989887

Father's Cookies produces chocolate-chip cookies in a large oven that holds up to 2,000 pounds of cookies at a time. Annual demand is constant at 200,000 pounds; variable cost is $.25 per pound. Oven cleanout is required after the oven processes 2,000 or fewer pounds in a batch (i.e., each time the oven is used); the cleanout takes one hour's time for four workers, each of whom is paid $7 per hour. Assume that multiple batches can be produced one after the other (i.e., production is not capped at 2,000 lbs). For example, at t=0 multiple batches can be produced nearly instantaneously; however, each batch will require a cleanout. The inventory holding cost is 20 percent per dollar per year; spoilage occurs if inventory is held by Father's Cookies more than 12 months. There is substantial unused oven capacity. In what quantity should these cookies be produced? Why?

Reference no: EM13989887

Questions Cloud

Find out the modes of transportation : What modes of transportation are best suited for large, low-value shipments? Why?

Prepare a one-page summary from a nutrition article : Prepare a one-page summary from a nutrition article you have read. The articles must be taken from referred journals that were published between 2008-present

Define organizational behavior : Define organizational behavior and discuss the organizational opportunities and challenges of globalization, workforce diversity, and emerging employment relationships.

What is the difference between fraud and abuse : Forensic accountants and fraud examiners provide support for accusations of fraud. To be effective, they must understand the difference between fraud and abuse, and must understand the legal concept of fraud, as well as elements of fraud. What is the..

In what quantity should these cookies be produced : Father's Cookies produces chocolate-chip cookies in a large oven that holds up to 2,000 pounds of cookies at a time. Annual demand is constant at 200,000 pounds; variable cost is $.25 per pound. There is substantial unused oven capacity. In what quan..

Research how they reproduce and id them : Note whether the pathogen you chose was reported as a risk to the workplace in the Infectious Diseases in the Workplace article you read on the Home page.

Find out the sort of cultural aspects : You are speaking on the phone with Mike when he asks about what sort of cultural aspects you are considering in this plan.

Number of levels between upper management and labor : Let's talk about the number of levels between upper management and labor. In your experience, how do a flat organization (one with only a few levels of difference between upper management and labor) and a tall organization (one with many levels betwe..

What is the marketing mix : What is the marketing mix? Discuss how conducting a SWOT (strengths, weaknesses, opportunities, threats) analysis helps a firm (or an individual) develop its strategic plan.

User Account

All Pages