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 carpet cleaning machine, Gabriela Manufacturing must decide whether...

Gabriela Manufacturing must decide whether to insource or outsource a new toxic-free miracle carpet cleaner that works with its Miracle Carpet Cleaning Machine. If it decides to in

Describe functions you would include in this sswg, As the System Safety Eng...

As the System Safety Engineer for your firm, you are writing a System Safety Working Group (SSWG) charter. List 6 individuals/functions you would include in this SSWG and the reaso

Define contribute toward building a more ethical environment, How can you c...

How can you contribute toward building a more ethical environment?

Describe wholesale pricing, What provision of the Telecommunications Act of...

What provision of the Telecommunications Act of 1996 prohibits ILECs from requiring customers to dial an extra digit when calling someone who subscribes to a competitor's local pho

Electronic data interchange, Electronic data interchange relies on   St...

Electronic data interchange relies on   Structured data and standard business documents.

Evaluate the performance of a bank holding company, The purpose of the proj...

The purpose of the project is to evaluate the performance of a bank holding company of your choice. 1. Choose a bank holding company. You can choose from Top 50 BHCs or find a b

Explain challenges in leading a multi-generational workforce, Challenges in...

Challenges in leading a multi-generational and/or multi-cultural workforces: Need a complete summary for the listed assignment, references. Please at least one page of information

Ventilation, a. To cater for adequate supply of oxygen or air required for...

a. To cater for adequate supply of oxygen or air required for respiration. b. To provide thermal comfort b maintaining adequate heat balance of the body. c. To get r

Difference between production planning and control, Difference between prod...

Difference between production Planning and Control Many people are of the view that production planning embraces both planning and control. In the broader sense, production pla

Explain needed for good information literacy, 1. In two or three sentences,...

1. In two or three sentences, please summarize what you have learned about information literacy so far in your earlier courses and in this seminar. 2. Then explain how informati

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