Question
A toy manufacturer makes its own wind-up motors, which are then put into its toys. While the toy manufacturing process is continuous, the motors are
A toy manufacturer makes its own wind-up motors, which are then put into its toys. While the toy manufacturing process is continuous, the motors are intermittent flow. Data on the manufacture of the motors appears below.
Annual demand = 75,000 units
Daily sub-assembly production rate = 625
Setup cost (S) = $85 per batch
Operating days = 250
Carrying cost = 16% per unit per year
Unit Cost = $63.95
a. To minimize cost, how large should each batch of sub-assemblies be? [ Select ] ["1389.50", "1548.01", "1166.19", "7289.00", "1166.75"]
b. What is the maximum production inventory [ Select ] ["2915.35", "5831.01", "686.27", "789.45", "804.96"]
c. What is the total cost to manage the inventory? $ [ Select ] ["$2,915.50", "$583.15", "$4,118.20", "$8,236.39", "$7,288.00"]
d. What are the number of set-ups in the process? [ Select ] ["23.89", "48.45", "52.67", "3.44", "6.86"]
e. What if the toy manufacturer decided to make 1300 motors per batch, what would the set-up cost be? [ Select ] ["$1,166.27", "$4,118.20", "$5,830.90", "$2,915.40", "$4,903.85"]
f. Based on the initial POQ, what percentage of time will the toy manufacturer be producing motors? [ Select ] ["20%", "48%", "52%", "80%", "35%"]
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