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5. A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled equipment maintenance, management feels they can
5. A fleet repair facility has the capacity to repair 800 trucks per month. However, due to scheduled equipment maintenance, management feels they can repair no more than 600 trucks per month. Last month, two employees were absent several days each, and only 400 trucks were repaired. a. Calculate the utilization of the repair shop. b. Calculate the efficiency of the repair shop. c. Discuss the utilization and efficiency of this repair facility. What can be done to improve the operations at the facility? (5 Marks) 6. Golden Crust Bakery buys flour in 25-pound bags. The bakery uses an average of 1,215 bags a year. Preparing an order and receiving a shipment of flour involves a cost of $10 per order. Annual holding costs are $75 per bag. Once an order for flour is placed, it takes six (6) days to receive it from the flour factory. The bakery operates 350 days per year. Calculate the following: Economic Order Quantity (ii) Expected number of orders (Order Frequency) Average inventory (iv) The annual holding cost (v) The annual ordering cost (vi) The total annual cost of inventory management (vii) Reorder point (viii) If holding costs were to increase by $9 per year, how would that affect the minimum total annual cost? (15 Marks)
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