Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

In a gear box manufacturing unit, bevel gears are required at a constant rate of 250 gears/day. The fixed cost or ordering cost is Rs

In a gear box manufacturing unit, bevel gears are required at a constant rate of 250 gears/day. The fixed cost or ordering cost is Rs 175 and cost of holding the bevel gears in Inventory is Rs 45/gear/month of 30 days. If the bevel gear is not available when required the penalty will be Rs 10/gear/day of delay. Determine the optimum ordering quantity, shortage quantity and cycle time. What will be the best policy if the cost becomes infinity?

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

Operations Management

Authors: William J Stevenson

12th edition

2900078024107, 78024102, 978-0078024108

More Books

Students also viewed these General Management questions

Question

What is meant by the term communality of a variable? Lo1

Answered: 1 week ago