Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The first 3 answers are correct, please help with the final 2 IL - 5 3 Bob's Bumpers has a repetitive manufacturing facility in Kentucky

The first 3 answers are correct, please help with the final 2
IL-53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parls. The faclaty poperintes
280 days per yeat and has annual demand of 58,000 bumpers. They can produce up to 415 bumpers each day it costs $90 to set up the production line to
produce bumpers. The cost of each bumper is $148 and annual holding costs are $36 per unit. Setup labor cost is $26 per hour:
What is the optimal size of the production run for bumpers? (Display your answer to the nearest whole number.)
761
Based on your answer to the previous question, and assuning the manufacturer holds no safety stock, whal would be the average inventory for these
bumpers? (Display your answer to the nearest whole number.)
Based on your answer two questions back, how many production runs will be required each year to satisty demand? HiNT As a generai rule, whenever
calculaling a value that is based on previous calculations in Excel, always be sure to use cell references rallier than a rounded value as a calculation injut
(Display yout aniswer to the appropriale whole number)
76
Suppose the customer (an auto manufacturer) wants to purchase in lots of 410 and that Bol's Bumpers is able to reduce setup costs fo the poln' where 4 ide
is now the optimal production run quantity How much will they save in annual hoiding costs with this new lowel production quantity? fotsplay your anserer it
two dectimal places _)
Number:
image text in transcribed

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

Strategic Management of Technological Innovation

Authors: Melissa A. Schilling

5th edition

1259539067, 9781259737817 , 978-1259539060

More Books

Students also viewed these General Management questions