A toy manufacturer makes its own wind-up motors, which are then put into its toys. Whilethe toy manufacturing process is continuous, the motors are intermittent flow. Data onthe manufacture of the motors appears below.Annual demand (D) = 50,000 unitsDaily subassembly production rate = 1,000Daily subassembly usage rate = 200Setup cost (S) = $85 per batchCarrying cost = $.20 per unit per yearcalculate:i.optimal order quantityi.Number of days are required to produce a batchii.The average inventoryiv.Total annual inventory cost

Let, Annual demand, D = 50000 Units Daily production rate, p = 1000 units Daily usage rate, d =200…

Answered: A toy manufacturer makes its own…

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...

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On the average, a firm has 10 weeks of work-in-process, and annual cost of goods sold is $15 million. Assuming that the company works 50 weeks a year: a. What is the dollar value of the work-in-process? b. If the work-in-process could be reduced to 7 weeks and the annual cost of carrying inventory was 20% of the inventory value, what would be the annual saving?
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