Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

JL . 5 3 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates

JL.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates 350 days per year and has annual demand of 75,000 bumpers. They can produce up to 330 bumpers each day. It costs $71 to set up the production line to produce bumpers. The cost of each bumper is $148 and annual holding costs are $37 per unit. Setup labor cost is $25 per hour. What is the optimal size of the production run for bumpers? (Display your answer to the nearest whole number.)189 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.) Number

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

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

Step: 3

blur-text-image

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

Entrepreneurship

Authors: Andrew Zacharakis, William D Bygrave

5th Edition

1119563097, 9781119563099

Students also viewed these General Management questions