KRadovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates itsproduction facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability ofproducing 100 per day Setting up the light production costs $48. The cost of each light is $1.05 The holding cost is$0.15 per light per yeara) What is the optimal size of the production run?units (round your response to the nearest whole number).

EOQ stands for economic order quantity. It is a company's optimal order quantity that undervalues…

Answered: 12units (round your response to the…

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...

See similar textbooks

Similar questions

Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,200 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $51. The cost of each light is $1.00. The holding cost is $0.15 per light per year. d. What is the total cost per year, including the cost of the lights? (round your response to two decimal places).
Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300days per year. It has orders for about 11,600 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $51. The cost of each light is $0.95. The holding cost is $0.10 per light per year. a) What is the optimal size of the production run? nothing units (round your response to the nearest whole number).
Bulldogs Inc. expects to use 48,000 boxes of chocolate per year costing P12 per box. Inventory carrying cost is equal to 20% of the purchase price. The company uses its inventory at a constant rate. The lead time for placing the order is 3 days, and Bulldogs Co. holds 2,400 boxes of paint as safety stock. If the company orders 2,000 boxes of chocolate per order, what is the cost of carrying inventory? A. P8,160 B. P5,280 C. P5,760 D. P2,400
The Metropolitan Book Company purchases paper from the Atlantic Paper Company. Metropolitanproduces magazines and paperbacks that require 1,215,000 pounds of paper per year. Thecost per order for the company is $1,200; the cost of holding 1 pound of paper in inventory is$0.08 per year. Determine The economic order quantity
JNR Corporation makes wheels for toy cars. The company operates its production facility 300 days per year. It has orders for about 12,000 wheels per year and has the capability of producing 100 per day. Setting up the wheel production costs P50. The cost of each wheel is P10. The holding cost is P1 per wheel per year. a. What is the optimal size of the production run? b. What is the average holding cost per year? c. What is the average setup cost per year? d. What is the total cost per year, including the cost of the wheel?
Pam runs a mail-order business for gym equipment. The annual demand for the TricoFlexers is 16,000. The annual holding cost per unit per yr is $2.50 and the cost to place an order is $50.There are 300 working days in a yr. What is the optimal order quantity?
All-Star Bat Manufacturing, Inc., supplies baseball bats to major and minor league baseball teams. After an initial order in January, demand over the six-month baseball season is approximately constant at 1000 bats per month. Assuming that the bat production process can handle up to 4000 bats per month, the bat production setup costs are $150 per setup, the production cost is $10 per bat, and the holding costs have a monthly rate of 2%, what production lot size would you recommend to meet the demand during the baseball season? If All-Star operates 20 days per month, how often will the production process operate, and what is the length of a production run?
A company, needs 410 kg of a material per month. It costs RO 100 to make and receive an order, and it takes 12 workdays to receive it, the annual holding cost is 20% of purchase price. The price RO 2 per kg. The company is operating 6 workdays per week in a 52-week year. What is the expected time (in weeks) between orders? Round-up to the nearest integera. 185b. 115c. 100d. 111e. None is correct
Peachy Keen, Inc., makes mohair sweaters, blouses with Peter Pan collars, pedal pushers,poodle skirts and other popular clothing styles of the 1950s. The average demand for mohairsweaters is 100 per week. Peachy’s production facility has the capacity to sew 400 sweatersper week. Setup cost is Rs 35100. The value of finished goods inventory is Rs400persweater. The annual per-unit inventory holding cost is 20 percent of the item’s value.a. What is the economic production lot size (ELS)?b. What is the average time between orders (TBO)?c. What is the total of the annual holding cost and setup cost?
Roybow Corporation sells lawn mowers that cost $160 each to purchase and prepare for sale. Annual sales are 5,000 mowers , carrying costs are 20 percent of inventory costs , and Roybow icurs a cost of $32 each time an order is placed. a) what is the EOQ for the mowers b) what will be the total inventory costs if the EOQ amount is ordered?
1000. Nestle Ltd. It produces its premium plant food in 40 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag. What will the optimal maximum inventory level on hand end of each production run? Round - up to the nearest integer ?
Race One Motors is an Indonesian car manufacturer. At its largest manufacturing facility, in Jakarta, the company produces subcomponents at a rate of 305 per day, and it uses these subcomponents at a rate of 12,500 per year (of 250 working days). Holding costs are $2 per item per year, and ordering costs are $32 per order. a) What is the economic production quantity?b) How many production runs per year will be made?c) What will be the maximum inventory level?d) What percentage of time will the facility be producing components?e) What is the annual cost of ordering and holding inventory?

SEE MORE QUESTIONS

Recommended textbooks for you

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Practical Management Science

Operations Management

ISBN:

9781337406659

Author:

WINSTON, Wayne L.

Publisher:

Cengage,

Operations Management

ISBN:

9781259667473

Author:

William J Stevenson

Publisher:

McGraw-Hill Education

Operations and Supply Chain Management (Mcgraw-hi…

Operations Management

ISBN:

9781259666100

Author:

F. Robert Jacobs, Richard B Chase

Publisher:

McGraw-Hill Education

Business in Action

Operations Management

ISBN:

9780135198100

Author:

BOVEE

Publisher:

PEARSON CO

Purchasing and Supply Chain Management

Operations Management

ISBN:

9781285869681

Author:

Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:

Cengage Learning

Production and Operations Analysis, Seventh Editi…

Operations Management

ISBN:

9781478623069

Author:

Steven Nahmias, Tava Lennon Olsen

Publisher:

Waveland Press, Inc.

SEE MORE TEXTBOOKS

12units (round your response to the nearest whole number) a) What is the optimal size of the production run?