Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A toy manufacturer uses 48,000 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce

image text in transcribed
A toy manufacturer uses 48,000 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 1,000 per day. The toy trucks are assembled uniformly over the entire year . Carrying cost is $1.30 per wheel per year. Setup cost for a production run is $45. The firm operates 240 days per year. Determine the following: a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.) EPO 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.) Total Annual Inventory cost c. Cycle time for the optimal run size (Round your answer to two decimal points.) Cycle Time d. Run time (Round your answer to two decimal points) Run Time

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

Cost And Management Audit

Authors: Dr Veena Soni

1st Edition

6202551992, 978-6202551991

More Books

Students also viewed these Accounting questions