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

Concept of trade off in business strategy, Concept of Trade off in Business...

Concept of Trade off in Business Strategy The trade-off concept was first introduced by Skinner (1969,1974) who carried out a large study of successful American manufacturing

Explain which station is the bottleneck station, A production line at A's m...

A production line at A's machine shop has three stations. The first station can process a unit in 10 minutes. The second station has two identical machines, each of which can proce

Describe you can conduct outside research to locate info, In a 1-2 page pap...

In a 1-2 page paper discuss the following case study by applying the knowledge you gained through this week's studies. If necessary, you can conduct outside research to locate info

Explain what is it and how does it help the consumer, Unconscionability is ...

Unconscionability is an import UCC concept. What is it and how does it help the consumer? Illustrate your answer with examples

Compute the optimal quantity and period for this problem, A large supplier ...

A large supplier of electronic components has decided to control the inventory of a certain item by a periodic review, order up to R policy. The mean demand rate for this item is 5

Explain federal trade commission, 1. Please explain, in detail, the strateg...

1. Please explain, in detail, the strategic issues both external and internal that Whole Foods' faces. 2. Please explain, in detail, the strengths, weaknesses, opportunities and th

When manager focus the progress of an affirmative action, when manager moni...

when manager monitors the progress of an affirmative action program to advance minorities within the corporation; reviewing progress on changing in staff attitude; calls a special

Describing the classical and contemporary views, There are five elements of...

There are five elements of organizational design and structure that are used to manage an organization, Division of Labour, Span of Control, Unity of Command, Authority/Responsibil

Explain major priorities associated with operations strategy, What are the ...

What are the major priorities associated with operations strategy? How has their relationship to each other changed over the years?

Explain why do companies that advertise their csr policies, 1. Why do compa...

1. Why do companies that advertise their CSR policies so often face serious controversies anyway 2. Identify an area in which Apple is regarded as responsible to a stakeholder

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