A toy manufacturer uses 50,610 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it canproduce at a rate of 800 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1.40 per wheel peryear. Setup cost for a production run is $43. The firm operates 241 days per year. Determine the following:a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.)EPQb. Use your final answer from part a to determine minimum total annual cost for carrying and setup. (Round your answer to a wholenumber.)Total Annual Inventory Costc. Cycle time for the optimal run size (Round your answer to two decimal points.)Cycle Timed. Run time (Round your answer to two decimal points.)Run TimePrev2 of 41Next >

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Answered: A toy manufacturer uses 50,610 rubber…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature oak file is estimated to be 5,000 units. The annual cost of carrying one unit in inventory is P10, and the cost to initiate a production run is P1,000. There are no miniature oak files on hard, and Cassie has scheduled four equal production runs of the miniature oak file for the coming year, the first of which is to be run immediately. Cassie has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Cassie does not maintain a safety stock, the estimated total carrying costs for the office fixtures for the coming year based on their current schedule is?The number of production runs per year of the miniature oak files that would minimize the sum of carrying costs and setup costs for the coming year is?
The Big Buy Supermarket stocks Munchies Cereal. Demand for Munchies is 4,000 boxes peryear (365 days). It costs the store $60 per order of Munchies, and it costs $0.80 per box per yearto keep the cereal in stock. Once an order for Munchies is placed, it takes 4 days to receive theorder from a food distributor. Determine The optimal order size
At sejahtera.com, a large retailer of popular books, demand is constant at 32,000 books per year. The cost of placing an order to replenish stock is $10, and the annual cost of holding is $4 per book. Stock is received five working days after an order has been placed. The backordering is not allowed. Assume 300 working days a year. a. calculate sejahtera.com’s optimal order quantity. b. calculate the optimal number of orders per year c. Calculate the optimal interval (in working days) between orders. d. Determine the demand during the lead time. e. Determine the reorder point. f. Determine the inventory position immediately after an order has been placed. g. Draw the model to represent the case.
At sejahtera.com, a large retailer of popular books, demand is constant at 32,000 books per year. The cost of placing an order to replenish stock is $10, and the annual cost of holding is $4 per book. Stock is received five working days after an order has been placed. The backordering is not allowed. Assume 300 working days a year. Please Draw the model to represent the case.
The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery,which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies perday. The bakery sets up the pie production operation and produces until a predetermined number(Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facilitiesfor producing other bakery items. The setup cost for a production run of fruit pies is $500.The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozenfruit pies, which is constant over time, is 5,000 pies. Determine The run length, in working days
The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery,which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies perday. The bakery sets up the pie production operation and produces until a predetermined number(Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facilitiesfor producing other bakery items. The setup cost for a production run of fruit pies is $500.The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozenfruit pies, which is constant over time, is 5,000 pies. Determine The optimal number of production runs per year
The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery,which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies perday. The bakery sets up the pie production operation and produces until a predetermined number(Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facilitiesfor producing other bakery items. The setup cost for a production run of fruit pies is $500.The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozenfruit pies, which is constant over time, is 5,000 pies. Determine The optimal cycle time (time between run starts)
Charles cycles produces bicycles and tricycles.The setup cost when switching production from one to the other is $3300. On average,retail customers order 240 tricycles per day (consider a 250-day year). The daily production rate for tricycles is 830 units. Unit cost of a tricycle is $84 and the company has determined inventory carrying cost to be 15%. What should the production order quantity in units be ? (Round up the answer to the next whole number?
A company uses the finite replenishment model to determine the optimal quantity to produce. There are 250 days a year over which demand and production occur. The daily demand is 520, and the production rate is 830 per day. The setup cost for production is $500 per setup. Assuming that the carrying cost is 20 percent of the item's $25 cost, what is the length, in days, of a production run if the company produces the replenishment quantity that minimizes its inventory-related costs? The length of the production run is ---------- days
Cassie Company manufactures a line of deluxe office fixtures. The annual demand for its miniature oak file is estimated to be 5,000 units. The annual cost of carrying one unit in inventory is P10, and the cost to initiate a production run is P1,000. There are no miniature oak files on hand, and Cassie has scheduled four equal production runs of the miniature oak file for the coming year, the first of which is to be run immediately. Cassie has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. If Cassie does not maintain a safety stock, the estimated total carrying costs for the office fixtures for the coming year based on their current schedule is Answer: Refer to Cassie, the number of production runs per year of the miniature oak files that would minimize the sum of carrying costs and setup costs for the coming year is Answer:
A liquor warehouse expects to sell 10,000 bottles of scotch whiskey in a year. Each bottle costs $16, plus a fixed charge of $112 per order. If it costs $14 to store a bottle for a year, how many bottles should be ordered at a time and how many orders should the warehouse place in a year to minimize inventory costs? find bottles per order........ orders per year.......
Westside Auto purchases a component used in the manufacture of automobile generators directly from the supplier. Westside’s generator production operation (which operates at a constant rate) will require 1000 components per month. Assume that ordering costs are $25 per order, the unit cost is $2.50 per component, and annual holding costs are 20% of the value of the inventory. Westside has 250 working days per year. Suppose that Westside’s management likes the operational efficiency of ordering once a month in quantities of 1000. How much more expensive would this policy be? Use 2 decimal places in your answer.

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