How to find the optimum number of units, Operation Management

Assignment Help:

A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 60 units per day. The setup cost for a production run is $ 125.00. The cost of holding is $ 4.00 per unit per year. The demand for the item is continuous and constant and is 3,900 units per year. (Note: The demand occurs only when the company is operating, that is, 5 days a week for 52 weeks). Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer.


Related Discussions:- How to find the optimum number of units

Explain what is the college education fee, On the day his son was born, a f...

On the day his son was born, a father decided to establish a fund for his son's college education. The father wants the son to be able to withdraw $4000 from the fund on his 18th b

Explain how can mexico production help us, How can Mexico production help U...

How can Mexico production help US manufacturers bring back some/most? of their Asia offshoring activities?

Define the reasons pandora would create a disaster recovery, Describe the r...

Describe the reasons Pandora would create a disaster recovery plan and a business continuity plan

Explain what does the project portfolio illustrate, What does the project p...

What does the project portfolio illustrate? How might it be useful to management?

Ethical issues that could comes in the underwriting process, What is the di...

What is the difference between rating and underwriting and how is it used? Identify and discuss any ethical issues that could arise in the underwriting process.

Find average inventory, A grocery store needs to sell 3,000 cartons of 2L 2...

A grocery store needs to sell 3,000 cartons of 2L 2% milk per month. The sales is relatively constant throughout the month. The owner of this grocery store purchases milk from a su

Explain assembly of power steering pumps, A small assembly line for the ass...

A small assembly line for the assembly of power steering pumps needs to be balanced. Exhibit 8.11 in the text is the precedence diagram. The cycle time is determined to be 1.5 minu

Explain technology meets the requisite market potential, Pharma Blitz devel...

Pharma Blitz develops and markets new technological products to be used in health care. The development of a new product operates as follows. When a new technology meets the requis

Explain graph based layout construction method, Is the Graph based layout c...

Is the Graph based layout construction method always produces maximally Planar Graph & Maximally Planar weighted graph?

Explain which the county is considering to lease, A private prisoner-transf...

A private prisoner-transfer facility would lease for $50,000 per year, which the county is considering to lease. It estimates it will cost $50 per prisoner to process the paperwork

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