Question
The Stelco manufacturing company produces a small electric motor for home entertainment appliance producers. The yearly demand is estimated at 72000 units/year. The company has
The Stelco manufacturing company produces a small electric motor for home entertainment appliance producers. The yearly demand is estimated at 72000 units/year. The company has the capacity to produce 400 units of product per day. It takes only a few minutes to setup the system that produces the product and cost of setup is $7.5 per setup. The company is reluctant to produce the product in large batches because of inventory storage cost which is $1.5 per unit per year. The company operates 360 days per year A)-what is the most economical number of motors the company should produce, during each production runB)-What is the length of the production run in days Problem #5The Altec Oil storage and distributing company ships heating oil to a large number of customers. The company makes $10 profit per barrel (bbl) of fuel it ships during a season, but takes a $5 loss per bbl after the season is over. The following discrete probability distribution for the season's demand has been identified. The demand levels along with their probabilities are given below. Demand (D) 1020304050 Probability 0.20.30.30.10.1 How many barrels of the fuel should the Altec company should order?
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