A company that produces hair dryers buys some of the components, but it makes the heating element, which it can produce at the rateof 900 per day. Hair dryers are assembled daily, 252 days a year, at a rate of 350 per day. Because of the disparity between theproduction and usage rates, the heating elements are periodically produced in batches of 2,400 units. c.What is the average inventory of elements, assuming each production cycle begins when there are none on hand? (Do not roundintermediate calculations. Round your answer to the nearest whole number.)Average inventoryd. The same equipment that is used to make the heating elements could also be used to make a component for another of the firm'sproducts. That job would require 4 days, including setup. Setup time for making a batch of the heating elements is a half day. Is thereenough time to do this job between production of batches of heating elements?O YesO No

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Answered: c.What is the average inventory of…

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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A company manufactures hair dryers. It buys some of the components, but it makes the heatingelement, which it can produce at the rate of 800 per day. Hair dryers are assembled daily, 250 daysa year, at a rate of 300 per day. Because of the disparity between the production and usage rates,the heating elements are periodically produced in batches of 2,000 units.a. Approximately how many batches of heating elements are produced annually?
A company manufactures hair dryers. It buys some of the components, but it makes the heating elements, which it can produce at the rate of 800 per day. Hair dryers are assembled daily, 250 days a year, at a rate of 300 per day. Because of the disparity between the production and usage rates, the heating elements are periodically produced in batches of 2,000 units. Approximately how many batches of heating elements are produced annually? If production on a batch begins when there is no inventory of heating elements on hand, how much inventory will be on hand two days later? The same equipment that is used to make the heating elements could also be used to make a component for another of the firm’s products. That job would require four days, including setup. Setup time for making a batch of heating elements is a half day. Is there enough time to do this job between productions of batches of heating elements? Explain.
A company that produces hair dryers buys some of the compnents, but it makes the heating element, which it can produce at the rate of 850 per day. Hair dryers are assembled daily, 250 days a year at a rate of 325 per day. Because of the disparity between the production and usuage rates, the heating elements are periodically produced in batches of 2,400 units. a. approx how many batches of heating elements are produced annually?
A company manufactures hair dryers. It buys some of the components, but it makes the heatingelement, which it can produce at the rate of 800 per day. Hair dryers are assembled daily, 250 daysa year, at a rate of 300 per day. Because of the disparity between the production and usage rates,the heating elements are periodically produced in batches of 2,000 units.a. Approximately how many batches of heating elements are produced annually?b. If production on a batch begins when there is no inventory of heating elements on hand, howmuch inventory will be on hand two days later?c. What is the average inventory of elements, assuming each production cycle begins when thereare none on hand?d. The same equipment that is used to make the heating elements could also be used to makea component for another of the firm’s products. That job would require four days, includingsetup. Setup time for making a batch of the heating elements is a half day. Is there enough timeto do this job between production…
Dan Bumblauskas is the owner of a small Iowa companythat produces electric knives used to cut fabric. The annualdemand is for 8,000 knives, and Dan produces the knives inbatches. On average, Dan can produce 150 knives per day; duringthe production process, demand has been about 40 knives perday. The cost to set up the production process is $ 100, and it costsDan $.80 to carry a knife for I year. How many knives shouldDan produce in each batch?
ABC company creates specialty shipping bags that they sell to pharmaceutical companies across the globe. With their current equipment, ABC can produce 12,000 shipping bags for every 10 bundles of materials purchased. Every month (20 working days), ABC purchases100 bundles of materials. Each bundle requires one (1) labor minute to process, and every labor hour costs an average of $14.00. Each week (5 working days), ABC pays $5,000 inoverhead costs, and equipment costs $600 a day to operate.(a) How many shipping bags does ABC produce in a standard month (20 working days)? Each workday (8 hours)? (b). What is the single-factor productivity for labor, per workday (8 hours)? (d). What is the multi-factor productivity, for every dollar spent per shipping bag?
A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage and handling costs are $5 per ton a year. The firm operates 200 days a year. (Note: 1 ton= 2,000 pound) How many tons per run are optimal? What would the average inventory be for this lot size? Determine the approximate length of a production run, in days. How much could the company save annually if the setup cost could be reduced to $25 per run?
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?
Emarpy Appliance is a company that produces allkinds of major appliances. Bud Banis, the president of Emarpy,is concerned about the production policy for the company’s bestsellingrefrigerator. The annual demand has been about 8,000units each year, and this demand has been constant throughoutthe year. The production capacity is 200 units per day. Each timeproduction starts, it costs the company $120 to move materialsinto place, reset the assembly line, and clean the equipment. Theholding cost of a refrigerator is $50 per year. The current productionplan calls for 400 refrigerators to be produced in each productionrun. Assume there are 250 working days per year.a) What is the daily demand of this product?b) If the company were to continue to produce 400 units each timeproduction starts, how many days would production continue?c) Under the current policy, how many production runs per yearwould be required? What would the annual setup cost be?d) If the current policy continues, how many…
. Sarah’s Organic Soap Company makes four kinds of organic liquid soap: “regular,”“lavender,” “citrus,” and “tea tree.” Demands for the four scents are 150, 120, 75, and50 kgs per hour, respectively. Sarah’s production process can produce any soap at therate of 450 kgs per hour, but 1.5 hours are needed to switch between scents. Duringthose switchover times, the process doesn’t produce any soap. Sarah wants to choosea production schedule that (i) cycles repeatedly through the four scents, (ii) meets therequired demand, and (iii) minimizes the amount of inventory held.How many kgs of “regular” should Sarah produce before switching over to another scent?
Flemming Accessories produces paper slicers used in offices and in art stores. The minislicer has been one of its most popular items: Annual demand is 6,750 units and is constant throughout the year. Kristen Flemming, owner of the firm, produces the minislicers in batches. On average, Kristen can manufacture 125 minislicers per day. Demand for these slicers during the production process is 30 per day. The setup cost for the equipment necessary to produce the minislicers is $150. Carrying costs are $1 per minislicer per year. How many minislicers should Kristen manufacture in each batch?
The Woody Company manufactures slippers and sells them at $10 a pair. Variable manufacturing costs are $4.50 a pair, and allocated fixed manufacturing costs are $1.50 a pair. It has enough idle capacity available to accept a one-time-only special order of 20,000 pairs of slippers at $6 a pair. Woody will not incur any marketing costs as a result of the special order. What would the effect on operating income be if the special order could be accepted without affecting normal sales? (a) $0, (b) $30,000 increase, (c) $90,000 increase, (d) $120,000 increase

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