11. A company that produces hair dryers makes its heating elements in house. Those pieces can be produced at a rate of 800 per day. Their total hair dryer demand reaches to 50000 per year and the company operates 250 days in a year. Then it can be concluded that they can use 50000/250= 200 units/day in order to ship to the customers. The assembly continues whole year uniformly. Carrying(holding) cost is 0,5 TL and setup cost for a run is 35 TL. a. Compute the economic production quantity (EPQ). b. Compute the cycle time. c. Compute the run time.

Practical Management Science
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ISBN:9781337406659
Author:WINSTON, Wayne L.
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11. A company that produces hair dryers makes its heating elements in house. Those pieces can be
produced at a rate of 800 per day. Their total hair dryer demand reaches to 50000 per year and
the company operates 250 days in a year. Then it can be concluded that they can use 50000/250=
200 units/day in order to ship to the customers. The assembly continues whole year uniformly.
Carrying(holding) cost is 0,5 TL and setup cost for a run is 35 TL.
a. Compute the economic production quantity (EPQ).
b. Compute the cycle time.
c.
Compute the run time.
Transcribed Image Text:11. A company that produces hair dryers makes its heating elements in house. Those pieces can be produced at a rate of 800 per day. Their total hair dryer demand reaches to 50000 per year and the company operates 250 days in a year. Then it can be concluded that they can use 50000/250= 200 units/day in order to ship to the customers. The assembly continues whole year uniformly. Carrying(holding) cost is 0,5 TL and setup cost for a run is 35 TL. a. Compute the economic production quantity (EPQ). b. Compute the cycle time. c. Compute the run time.
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