Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

a) What is the optimum production quantity? _______units (round your response to the nearest whole number) b) What is the maximum number of wheel bearings

image text in transcribed

a) What is the optimum production quantity? _______units (round your response to the nearest whole number)

b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?_______ units (round your response to the nearest whole number)

c)How many production runs of wheel bearings will Wheel-Rite have in a year?_______runs (round your response to two decimal places)

d)What is the toal setup plus holding cost for Wheel-Rite? $________ (round your response to two decimal places)

Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 9,900 wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $39, and holding cost is $0.40 per wheel bearing per year. Wheel-Rite can produce 480 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 48 bearings be shipped to it each business day. a) What is the optimum production quantity? units (round your response to the nearest whole number)

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 Brand Management Building Measuring And Managing Brand Equity

Authors: Kevin Lane Keller

3rd Edition

0131888595, 9780131888593

More Books

Students also viewed these General Management questions

Question

4 Name four appraisal methods.

Answered: 1 week ago

Question

8 What problems can occur with appraisal?

Answered: 1 week ago