Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A toy manufacturer uses 44,100 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce

image text in transcribed
image text in transcribed
A toy manufacturer uses 44,100 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 700 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1.00 per wheel per year. Setup cost for a production run is $48. The firm operates 245 days per year. Determine the following: a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.) b. Use your final answer from part a to determine minimum total annual cost for carrying and setup. (Round your answer to a whole number.) c. Cycle time for the optimal run size (Round your answer to two decimal points.) d. Run time (Round your answer to two decimal points.)

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_2

Step: 3

blur-text-image_3

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

Strategic Management Text And Cases

Authors: Gregory Dess , Gerry McNamara , Alan Eisner , Steve Sauerwald

11th Edition

1264124325, 978-1264124329

More Books

Students also viewed these General Management questions