Question
Suppose that it takes 15 minutes to produce one unit of Component CX in Plant ABC with 80 hours available per week The anmal
Suppose that it takes 15 minutes to produce one unit of Component CX in Plant ABC with 80 hours available per week The anmal deniand of the component is 10,400 units, and maximum level of accumulation during inventory cycle is 750 units. Assume that the component is demanded throughout the year, and there are 52 weeks in a year a) (10 points) How many weeks are there in the inventory cycle? b) (6 points) If inventory holding cost is $0.05 per unit per hour, what is the total inventory holding cost of this cycle? c) (4 points) Calculate the number of weeks to deplete the maximum inventory. What percentage of time will the plant be depleting this inventory level?
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