Explain what is the maximum inventory level, Operation Management

Assignment Help:

A company that makes kitchen faucets has found that demand for its model faucet is fairly constant at the rate of 100,000 units per year. Each model of faucet is made using the same equipment, and it costs $100 in lost production and scrap every time a change is made from producing one model of faucet to another. The cost of materials and labor in each faucet is $40, and the inventory holding cost is 25 percent of this per unit per year. If faucets are produced at the rate of 1,000 per day.

a. How many should be produced in each production run based on 250 working days per year?

b. What is the maximum inventory level?

c. How many days does it take to produce in a round?


Related Discussions:- Explain what is the maximum inventory level

Explain bebts, Champ Sports Corporation buys the assets of Delta Athletic C...

Champ Sports Corporation buys the assets of Delta Athletic Corporation. Champ continues Delta's business and retains the same personnel. Is Champ liable for Delta's debts?

Describe the value chain, Question 1: Describe the main growth strategi...

Question 1: Describe the main growth strategies that a firm can pursue and discuss conditions that favour each strategic option. Support your answer with suitable examples.

Products produced by project, 1. Identify products which you would expect t...

1. Identify products which you would expect to be produced by each of the following configurations: project, job shop, and batch and continuous. Answer: Many possible answers:

Show role as an employee of an organization in the is field, Briefly descri...

Briefly describe your role as an employee of an organization in the IS field. Give examples of what you need to know about information systems and how it can help with your job per

Explain intangible assets and human capital, Companies are now more and mor...

Companies are now more and more interested in using intangible assets and human capital as a way to gain an advantage over competitors. True False

Explain involuntary bankruptcy under the bankruptcy code, Samantha (Sam), a...

Samantha (Sam), a book dealer, has the following assets: a building worth $155,000, accounts receivable amounting to $32,500 due within the next three months, and $25,000 cash in t

Responsiveness - customer satisfaction and service quality, Responsiveness ...

Responsiveness - Customer Satisfaction and Service Quality Concerns the willingness or readiness of employees to provide service. It involves timeliness of service: mailing a

Essentials of management, write and explain the essentials of management gi...

write and explain the essentials of management giving practical examples

Describe how the uniform commercial code, Explain how the Uniform Commercia...

Explain how the Uniform Commercial Code treats goods that were fraudulently obtained.estion here

Explain product in an overseas market, How would you go about establishing ...

How would you go about establishing your company and your product in an overseas market?

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