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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 units a day. Ninetyfive units will be used dally in assembing the final product. The company operates five days a week, 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 $ Inventory holding cost will be $ 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 daysDo not round hrermedlate calculetions. Found the final enswer to 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 days per cycle of this job for the other Job, will there be enough time?
Yes
No
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