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 what is risk, What is risk? How does risk differ from uncertainty? ...

What is risk? How does risk differ from uncertainty? How does it impact a business?

Explain customers preferred bidders list for future contract, A customer is...

A customer is unhappy with the performance thus far on a project. The customer states that, unless scope changes are made at the contractors expense, the contractor would be remove

How develop a decision making process, Because of the aggressive actions of...

Because of the aggressive actions of his brokerage firm, a stockbroker feels pressure to recommend to a client a stock he does not consider a good investment. Please develop a deci

How to exceeded these requirements, Please solve the following constraint t...

Please solve the following constraint then graph: -0.30x + 0.70y ? 0 Show ALL work as to how you got to your conclusion. I will give the highest rating to the person who I fe

How do you explain queuing theory, How do you describe queuing theory? How ...

How do you describe queuing theory? How can you use queuing theory in your organization to improve process capability?

What is prime cost, What is Prime Cost? The sum of Direct Labour Cost, ...

What is Prime Cost? The sum of Direct Labour Cost, Direct Expenses and Direct Material Cost is Prime Cost.

Why is cutting cost an merit of reducing project scope, Why is cutting cost...

Why is cutting cost an advantage of reducing project scope? Need at least a paragraph

Explain importance of team preparation, • Prepare a 3 to 5 page paper discu...

• Prepare a 3 to 5 page paper discussing what conclusions you can reach on the importance of team preparation and member selection to the "Define" stage, and eventual success of Si

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