Answered step by step
Verified Expert Solution
Question
...
1 Approved Answer
Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates 3 6 0 days
Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates days per year and has annual demand of bumpers. They can produce up to bumpers each day. It costs $ to set up the production line to produce bumpers. The cost of each bumper is $ and annual holding costs are $ per unit. Setup labor cost is $ per hour. What is the optimal size of the production run for bumpers? Display your answer to the nearest whole number. Based on your answer to the previous question, and assuming the manufacturer holds no safety stock, what would be the average inventory for these bumpers? Display your answer to the nearest whole number. Based on your answer two questions back, how many production runs will be required each year to satisfy demand? HINT: As a general rule, whenever calculating a value that is based on previous calculations in Excel, always be sure to use cell references rather than a rounded value as a calculation input. Display your answer to the appropriate whole number. Suppose the customer an auto manufacturer wants to purchase in lots of and that Bob's Bumpers is able to reduce setup costs to the point where is now the optimal production run quantity. How much will they save in annual holding costs with this new lower production quantity? Display your answer to two decimal places. How much will they save in annual setup costs with this new lower production quantity? Display your answer to two decimal places.
Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates days per year and has annual demand of bumpers. They can produce up to bumpers each day. It costs $ to set up the production line to produce bumpers. The cost of each bumper is $ and annual holding costs are $ per unit. Setup labor cost is $ per hour.
What is the optimal size of the production run for bumpers? Display your answer to the nearest whole number.
Based on your answer to the previous question, and assuming the manufacturer holds no safety stock, what would be the average inventory for these bumpers? Display your answer to the nearest whole number.
Based on your answer two questions back, how many production runs will be required each year to satisfy demand? HINT: As a general rule, whenever calculating a value that is based on previous calculations in Excel, always be sure to use cell references rather than a rounded value as a calculation input. Display your answer to the appropriate whole number.
Suppose the customer an auto manufacturer wants to purchase in lots of and that Bob's Bumpers is able to reduce setup costs to the point where is now the optimal production run quantity. How much will they save in annual holding costs with this new lower production quantity? Display your answer to two decimal places.
How much will they save in annual setup costs with this new lower production quantity? Display your answer to two decimal places.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-text-image.webp)
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Step: 3
![blur-text-image](https://dsd5zvtm8ll6.cloudfront.net/includes/images/document_product_info/blur-subtext-image.webp)
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started