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What is the maximum number of wheel bearings

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Reference no: EM132835468

Sydney is the production manager of Silver Enterprises, a small producer of metal parts. Silver Enterprises supplies AFC Trading, a larger assemble company, with 15,000 wheel bearings each year. This order has been stable for some time. Setup cost for Silver Enterprises is $40, and holding cost is $0.60 per wheel bearing per year. Silver Enterprises can produce 500 wheel bearings per day. AFC Trading is a just-in-time manufacturer and requires that 50 bearings be shipped to its plant each business day.

Problem 1. What is the optimum production quantity? ____________

Problem 2. What is the total setup cost + holding cost of Silver Enterprises per year? _________

Problem 3. What is the maximum number of wheel bearings that will be in inventory at Silver Enterprises? __________

Problem 4. How many production runs of wheel bearings will Silver Enterprises have in a year? _________

Problem 5. How long will the production lot size last? Compute the cycle time. _______

Problem 6. How long is the production run?

Reference no: EM132835468

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