Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Sports Stuff, Inc. (SSI) is a manufacturing firm that produces sporting goods. They have started operating a factory in the U.S. and have opened

image text in transcribed

Sports Stuff, Inc. (SSI) is a manufacturing firm that produces sporting goods. They have started operating a factory in the U.S. and have opened a company owned store adjacent to the factory. The production manager at the factory is trying to ascertain the optimal number of footballs to produce with each production run. After careful analysis, she believes that the following data are correct: Annual demand is 21,875 footballs per year The store is open 350 days per year The daily production capacity of the factory is 200 units Setup cost incurred to start football production is $25 Annual storage cost per football is $17.50 Lead time is two days Safety stock is 10 footballs Answer the following questions for SSI. a) What is the optimal lot size for football production? (round to 2 decimals) footballs b) What is the minimum inventory level of footballs? footballs c) What is the maximum inventory level of footballs? (round to 2 decimals) footballs d) What is the average inventory level of footballs? (round to 2 decimals) footballs e) What is the reorder point in units? footballs f) What is the annual setup cost for football production? (round to 2 decimals) $ g) What is the annual holding cost for the football inventory? (round to 2 decimals) $

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

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

International Marketing And Export Management

Authors: Gerald Albaum , Alexander Josiassen , Edwin Duerr

8th Edition

1292016922, 978-1292016924

Students also viewed these General Management questions

Question

Indicate identities used n cot20-1 Prove: cot 20 2cot0

Answered: 1 week ago