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Management believes 6,000 WVD drums could be sold each year if the company had sufficient manufacturing capacity. As an alternative to adding another welding machine, management has considered buying additional drums from an outside supplier. Harcor Industries, Inc., a supplier of quality products, would be able to provide up to 4,000 WVD-type drums per year at a price of $138 per drum, which TufStuff would resell to its customers at its normal selling price after appropriate relabeling.
Megan Flores, Tuf Stuffs production manager, has suggested that the company could make better use of the welding machine by manufacturing bike frames, which would require only 0.5 hours
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APPLYIING EBQ MODEL, WHAT BATCH SIZE WOULD YOU RECOMEND FOR THIS PRODUCT
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