Determine the economic production quantity, Operation Management

Assignment Help:

Water Wheelies manufactures high-pressure sprinkler heads. These are produced periodically at a rate of 20,000 per month. Demand is steady at 15,000 per month. Each production run has a set-up cost of $120. Variable direct production costs are $6.00 for labour, $2.00 for parts, and $4.00 for raw materials. Water Wheelies uses an annual inventory holding cost of 20% of the unit cost for carrying the unit for one year. a. Determine the optimal production quantity during each production run. b. Determine the annual holding cost, set-up cost and total cost. c. Determine the maximum inventory. d. Determine the cycle time between two production runs in days. Assume 250 days per year. In each cycle compute the number of days the production facility is busy (uptime) and the number of days the production facility is idle (downtime). e. Water Wheelies can double its production rate by using a new technology, but the set-up cost per production run will also double. Determine the economic production quantity and the annual holding and set-up costs.


Related Discussions:- Determine the economic production quantity

Explain about the term flexible firm, Explain about the term flexible firm....

Explain about the term flexible firm. Flexible firm: By John Atkinson the conception of the “flexible firm” was proposed, he recognised about organisations will need grea

Explain how are the quality of health care, How are the quality of health c...

How are the quality of health care and excellence in customer service related to each other?

Explain benefits and variable pay, Benefits and Variable Pay Please respond...

Benefits and Variable Pay Please respond to the following- • Analyze the types of benefits usually available in the health care industry and determine which benefits are most im

Explain medical facility does mris for sports injuries, A medical facility ...

A medical facility does MRIs for sports injuries. Occasionally a test yields inconclusive results and must be repeated. Using the following sample data and n = 195. SAMPLE 1 2 3 4

Explain timmy says he doesn like getting swindled, Timmy Thompson, who fini...

Timmy Thompson, who finished his second year at a local community college last May, sees an advertisement to rent an apartment at Ocean Apartments for $1,500 a month. Timmy walks i

Explain motivation, Explain Motivation. The factors leading mainly towa...

Explain Motivation. The factors leading mainly towards motivation are :- (i) Achievement - Personal satisfaction in job completion and problem solving. (ii) Advancement -

Simulation, Which of the following probability distributions cannot be simu...

Which of the following probability distributions cannot be simulated ?

E-business, E-Business, Knowledge Management and Globalisation of Services ...

E-Business, Knowledge Management and Globalisation of Services Development of supply chains not only in manufacturing but service companies; centralised decision making; exten

Explain mbo to improve the innovation process at gsli, Do you believe that ...

Do you believe that MBO is appropriate for an organization where the primary output is innovation? If not why not? If so, how would you apply MBO to improve the innovation process

Define what law either allow or prohibits this behavior, Cecilia is a 14-ye...

Cecilia is a 14-year old freshman at United High School. She works from 2pm to 10pm three days a week. In order to get to work on time she leaves school early missing her last clas

Write Your Message!

Captcha
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