Using an appropriate Fixed Order Quantity system model compute the following: (a) Minimum cost production lot size (whole number with no commas) (b) Number of production runs per year (two decimal points) (c) Cycle time (two decimal points) (d) Length of production run (two decimal points) \ (e) Maximum inventory (use the closest Z value, answer whole number) (f) The reorder point (whole number) (g) Total annual stocking cost (two decimal points with no commas)
A publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7500 copies. The cost of one copy of the book is $27.50. The holding cost is based on 18% annual rate, and production setup costs are $550.00. The equipment on which the book is produced has an annual production volume of 21,000 copies. The Company uses 250 working days per year and the lead time for a production run is 12 days. Assume the company is willing to tolerate one stock-out per year and that the lead time demand follows a
Using an appropriate Fixed Order Quantity system model compute the following:
(a) Minimum cost production lot size (whole number with no commas)
(b) Number of production runs per year (two decimal points)
(c) Cycle time (two decimal points)
(d) Length of production run (two decimal points) \
(e) Maximum inventory (use the closest Z value, answer whole number)
(f) The reorder point (whole number)
(g) Total annual stocking cost (two decimal points with no commas)
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