Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Emarpy Appliance is a company that produces al kinds of major appliances. Eud Banis, the president of Emarpy, is concorned about the production policy for

image text in transcribed
Emarpy Appliance is a company that produces al kinds of major appliances. Eud Banis, the president of Emarpy, is concorned about the production policy for the company/s bestselling refrigerator The annual demand for this has beon about 7.250 units oach yoar, and this domand has been constant trroughout the year The production eapocity is 130 units per day Each time production starts it costs the company $130 to move materials into place, reset the assembly ine, and clean the equipment. The holding cost of a refrigeratior is $46 per year. The current production pian cals for 390 refrigerators to be produced in each production run. Assume there are 250 working days per year. a) What is the daly demand of this product? units (enter your response as a whole number). b) If the compary weee to consinue to produce 390 units each time production starts, how many days would pecoduction continue? days (enter your rospanse as a whole number). c) Under the current policy. how many production rurs per year would be required? funs (round your response to the nearest whole numben? Whot would the annual setup cost be? \$ (round your response to the neareat whole number). d) It the current policy continues, how many refriperation would be in inventory when production stops? units (round your response fo the nearest whole number). What would the werage inventory level be? unis fround your response to the nearest whole numberf. f) If Bud Banis wants to minimize the total annual inventory cost, how many refigerators should be produced in each production rum? units fround 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

Management Fundamentals

Authors: Robert N. Lussier

9th Edition

154438419X, 978-1544384191

More Books

Students also viewed these General Management questions