Arthur Meiners is the production manager ofWheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 10,000 wheelbearings each year. This order has been stable for some time.Setup cost for Wheel-Rite is $40, and holding cost is $.60 perwheel bearing per year. Wheel-Rite can produce 500 wheel bearings per day. Cal-Tex is a just-in-time manufacturer andrequires that 50 bearings be shipped to it each business day.a) What is the optimum production quantity?b) What is the maximum number of wheel bearings that willbe in inventory at Wheel-Rite?c) How many production runs of wheel bearings will WheelRite have in a year?d) What is the total setup 1 holding cost for Wheel-Rite?
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.
Arthur Meiners is the
Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 10,000 wheel
bearings each year. This order has been stable for some time.
Setup cost for Wheel-Rite is $40, and holding cost is $.60 per
wheel bearing per year. Wheel-Rite can produce 500 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and
requires that 50 bearings be shipped to it each business day.
a) What is the optimum production quantity?
b) What is the maximum number of wheel bearings that will
be in inventory at Wheel-Rite?
c) How many production runs of wheel bearings will WheelRite have in a year?
d) What is the total setup 1 holding cost for Wheel-Rite?
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