Practical Operations Management
2nd Edition
ISBN: 9781939297136
Author: Simpson
Publisher: HERCHER PUBLISHING,INCORPORATED
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Question
Chapter 12, Problem 1.1Q
Summary Introduction
Interpretation: Ending inventory for month 3
Concept Introduction: Inventory is the total goods or stock kept by organizations for resale. It is usually kept to meet uncertain demand. The holding of inventory incurs cost.
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Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that
he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip:
Setup labor cost
Annual holding cost
Daily production
Annual demand
Desired lot size
To obtain the desired lot size, the set-up time that should be achieved =
$25 per hour
$15 per unit
960 units/8 hour day
30,000 (250 days each x daily demand of 120 units)
120 units (one hour of production)
minutes (round your response to two decimal places).
Chapter 12 Solutions
Practical Operations Management
Ch. 12 - Prob. 1DQCh. 12 - Prob. 2DQCh. 12 - Prob. 3DQCh. 12 - Prob. 4DQCh. 12 - Prob. 5DQCh. 12 - Prob. 6DQCh. 12 - Prob. 1PCh. 12 - Prob. 2PCh. 12 - Prob. 3PCh. 12 - Prob. 4P
Ch. 12 - Prob. 5PCh. 12 - Prob. 6PCh. 12 - Prob. 7PCh. 12 - Prob. 8PCh. 12 - Prob. 9PCh. 12 - Prob. 10PCh. 12 - Prob. 11PCh. 12 - Prob. 12PCh. 12 - Prob. 13PCh. 12 - Prob. 14PCh. 12 - Prob. 15PCh. 12 - Prob. 16PCh. 12 - Prob. 17PCh. 12 - Prob. 18PCh. 12 - Prob. 19PCh. 12 - Prob. 20PCh. 12 - Prob. 21PCh. 12 - Prob. 22PCh. 12 - Prob. 23PCh. 12 - Prob. 24PCh. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Prob. 1.1QCh. 12 - Prob. 1.2QCh. 12 - Prob. 1.3QCh. 12 - Prob. 1.4QCh. 12 - Prob. 2.1QCh. 12 - Prob. 2.2QCh. 12 - Prob. 2.3QCh. 12 - Prob. 3.1QCh. 12 - Prob. 3.2QCh. 12 - Prob. 3.3Q
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