A chemical plant produces sodium bisulfate in 140 kg bags. Demand for this product is 35 tonnes per day. The capacity for producim this product is 50 tonnes per day. Setup cost is $500, and storage and handling costs are $240 per tonne per year. The company operates 210 days a year. (Note: 1 tonne 1,000 kg). a. What is the optimal number of bags per production run? (Round your intermediate calculations to 2 decimal places and the fine answer to the nearest whole number.) Optimal number of bags 2958 b. What would the average inventory level be for this lot size? (Round your intermediate calculations to 2 decimal places and the final answer to the nearest whole number.) Average inventory bags c. Determine the approximate length of a production run, in days. (Round the intermediate calculations and final answer to 2 decimal places.) Run length days d. About how many production runs per year would there be? (Round your intermediate calculations to 2 decimal places and th final answer to 1 decimal place.) Runs per year e. How much could the company save annually in inventory control cost if the setup cost could be reduced to $250 per productie and the optimal production quantity is recalculated and used? (Round the intermediate calculations and final answer to 2 decin places.) $4 Annual Savings
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
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