Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A toy manufacturing uses 40,000 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce

A toy manufacturing uses 40,000 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 600 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1 per wheel a year. Setup cost for a production run of wheels is $40. The firm operates 240 days per year. What is the approximate optimal run size (Round up the number)? O 1289 O 2105 3345 5456 4012
image text in transcribed
A toy manufacturing uses 40,000 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 600 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1 per wheel a year. Setup cost for a production run of wheels is $40. The firm operates 240 days per year. What is the approximate optimal run size (Round up the number)? 1289 2105 3345 5456 4012

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_2

Step: 3

blur-text-image_step3

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

Understanding And Managing Public Organizations

Authors: Hal G. Rainey, Sergio Fernandez, Deanna Malatesta

6th Edition

ISBN: 1119705894, 978-1119705895

More Books

Students also viewed these General Management questions

Question

What will you do or say to Anthony about this issue?

Answered: 1 week ago