Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A company is about to begin production of a new product. The manager of a department that is asked to produce one of the components

A company is about to begin production of a new product. The manager of a department that is asked to produce one of the components wants to know if there is enough machine time avallable. The machine will produce the item at a rate of 250 units a day. Ninety-five units will be used dally in assembing the final product. The company operates five days a week, 50 weeks a year. The manager estimates that it will take almost a full day to get the machine ready for a production run, at a cost of $240. Inventory holding cost will be $10 per unit per year:
a. What production run quantity should be used to minimize total annual setup and holding cost? (po not round intermediate celculations. Round the final snswer to the neerest whole number:)
Production run quantity units
b. What is the length of a production run (in days)?(Do not round hrermedlate calculetions. Found the final enswer to 2 decimal plecesing
Run length days
c. During production, at what rate will inventory bulld up?
Rate units
d. If the manager needs to run anotherjob between runs of this job. and needs a minimum of 9 days per cycle of this job for the other Job, will there be enough time?
Yes
No
image text in transcribed

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Management And The Arts

Authors: William J. Byrnes

5th Edition

0415663296, 978-0415663298

More Books

Students also viewed these General Management questions