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 which route will maximize lynn''s utility, In the past few years, t...

In the past few years, the traffic problems in Lynn McKell's hometown have gotten worse. Now, Broad Street is congested about half the time. The normal travel time to work for Lynn

Explain what ethical considerations your response, Please explain in detail...

Please explain in detail what you would do for the following scenario: A good friend of yours from college who had a wild reputation is applying at your company. The HR manager cat

Explain project form more common or the exponential form, Is the stretched-...

Is the stretched-S life cycle project form more common or the exponential form? What other aspects of managing a project are affected by the nature of the project form besides budg

Explain sell products to customers, Put the following business functions in...

Put the following business functions into a Functional Catalogue. 1. Sell products to customers 2. Determine which products to sell 3. Manage Equipment to hire Order produ

Supply chain, #question. 1. how does a formal procurement policy affect cus...

#question. 1. how does a formal procurement policy affect customer service

Compute the linear charge density, An infinite line charge produces a field...

An infinite line charge produces a field of 9 × 104 N/C at a distance of 2 cm. Calculate the linear charge density

Explain coordinated system, You have been named human resource manager for ...

You have been named human resource manager for a company that has 180 employees and no formal base pay system. What steps will you take to developed such a coordinated system?

Capacity planning, why is capacity planning important in production and op...

why is capacity planning important in production and operations management?

Find gross domestic product is accounted for by logistics, What percent of ...

What percent of North American gross domestic product is accounted for by logistics? Almost 11 percent Almost 22 percent Almost 33 percent Almost 44 percent Flingers

Opreation research modeling, Comment on this " model building is th...

Comment on this " model building is the excess of operation research

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