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- Fen Furnishingsproduces brass handles for the furniture industry in a four-stage process–Mixing,Moulding, Polishingand Packaging. Costs incurred in thePolishingDepartment during January are summarized as follows: January 1 Bal.Transfer from Moulding 20000 units $1,310,000 Direct Materials Added $391,600 Direct Labour $ 638,000 Manufacturing Overhead $307,400 Normal losses are estimated to be 2½% of input during theperiod. Inspection takes place duringthe processing operation, at which point damagedhandles are separated from good handles and sold as scrapto local furniture manufacturers at $85each. At inspection, 2,000 handleswere rejected as scrap. These units had reached the following degree of completion: Transfer from Moulding 100% Direct material added 40% Conversion costs 20%…7. Maribel is considering installing ice cream stalls on Turtle Beach. The length of the beach is 5 miles long. On average, in a week, there are 1,000 subathers that come to the beach and each value an icecream at $5. Transportation costs are $2.5. Each icecream costs $0.5 to make and there are $40 as a fixed maintenance cost per stall. A )Find the optimal number of stalls for Maribel? B) What is the profit at optimal number of stalls?Emarpy Appliance is a company that produces a llkinds of major appliances. Bud Banis, the president of Emarpy,is concerned a bout the production policy for the company's bestsellingrefrigerator. The annual demand has been about 8,000units each year, and this demand bas 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) lf the current policy continues, how many…
- • S7.25 Zan Azlett and Angela Zesiger have joined forcesto start A&Z Lettuce Products, a processor of packaged shredded lettuce for institutional use. Zan has years of food processingexperience, and Angela has extensive commercial food preparation experience. The process will consist of opening crates oflettuce and then sorting, washing, slicing, preserving, and finallypackaging the prepared lettuce. Together, with help from vendors,they think they can adequately estimate demand, fixed costs, revenues, and variable cost per 5-pound bag of lettuce. They think alargely manual process will have monthly fixed costs of $37,500and variable costs of $1.75 per bag. A more mechanized processwill have fixed costs of $75,000 per month with variable costs of$1.25 per 5-pound bag. They expect to sell the shredded lettucefor $2.50 per 5-pound bag.a) What is the break-even quantity for the manual process?b) What is the revenue at the break-even quantity for the manualprocess?c) What is the…1) A premier service outlet is opened 7 days a week, every day of the year. 40 bottles of their best engine oil is sold per day, with a standard deviation of 9.15, whilst each bottle of oil costs $15. The Outlet does a stock check every Monday when a supply sales representative arrives. Considering that the owner of the outlet wants a 99.5% service probability and lead time delivery of 3 days, how much bottles of oil should the outlet order, if presently there are 55 bottles of oil in stock1. Which of the following quantities has no effect on the first period’s ATP calculation? a) Current on-hand Inventory b) Booked customer orders for the first periods c) MPS quantity for the first period d) Forecasted demand for the first period 2. Which one of the following is an MRP lot-sizing rule that attempts to minimize the amount to minimize the amount of average inventory? a) Periodic order quantity (POQ), WITH P=2 b)Fixed order quantity (FOQ) c) Economic order quantity (EOQ) d)Lot for Lot (L4L). 3. Which of the following statements about lot-sizing rules for MRP is true? a) The periodic order quantity (POQ) rule generates a higher level of average inventory since it creates inventory remnants. b) FOQ is a dynamic lot-sizing rule which reduces the amount of inventory, by doing a better job of matching the order quantity to the projected on-hand inventory quantity. c) The lot for lot rule minimizes inventory investment but maximizes the number of orders placed. d) In…
- (1) An architect firm uses an average of 60 boxes of copier paper a day. The firm operates 280 days a year.Storage and handling costs for the paper are $30 a year per box, and its costs approximately $60 to orderand receive a shipment of paper.(a) What quantity order size would minimize the total annual inventory cost?________________________________________________________________________________(b) Determine the minimum total annual inventory cost.________________________________________________________________________________(c) The office manager is currently using an order size of 300 boxes. The partners of the firm expect theoffice to be managed "in a cost-efficient manner." Would you recommend the manager to use yourquantity from part (a) rather than 300 boxes? _______.Justify your answer (by determining the total annual inventory cost for 300 boxes):_____________________________________________________________________________7. Maribel is considering installing ice cream stalls on Turtle Beach. The length of the beach is 5 miles long. On average, in a week, there are 1,000 subathers that come to the beach and each value an icecream at $5. Transportation costs are $2.5. Each icecream costs $0.5 to make and there are $40 as a fixed maintenance cost per stall. 1. Find the optimal number of stalls for Maribel? 2.What is the profit at optimal number of stalls?Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the presidentof Emarpy, is concerned about the production policy for thecompany’s best-selling refrigerator. The annual demand hasbeen about 8,000 units each year, and this demand has beenconstant throughout the year. The production capacity is 200units per day. Each time production starts, it costs the company $120 to move materials into place, reset the assemblyline, and clean the equipment. The holding cost of a refrigerator is $50 per year. The current production plan calls for 400refrigerators to be produced in each production run. Assumethere 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 eachtime production starts, how many days would productioncontinue?c) Under the current policy, how many production runs peryear would be required? What would the annual setup costbe?d) If the current policy continues, how many…
- The owner of Old-Fashioned Berry Pies, S. Simon, is contemplating adding a new line ofpies, which will require leasing new equipment for a monthly payment of $6,000. Variablecosts would be $2 per pie, and pies would retail for $7 each.a. How many pies must be sold in order to break even?b. What would the profit (loss) be if 1,000 pies are made and sold in a month?c. How many pies must be sold to realize a profit of $4,000?d. If 2,000 can be sold, and a profit target is $5,000, what price should be charged per pie?1. Foxie Owl’s Besty Bagel shop makes fresh bagels. She has to buy raw materials fresh every day for selling on that day. She wants to know exactly how much should she spend on raw materials. Foxie did some analysis over the past month and came back with the following numbers: Daily demand was equally likely to be 200, 225, 250, 275, or 300 bagels. What should be the number of bagels on hand to satisfy a Fill Rate requirement of 96%, rounded to next integer value? Group of answer choices 300 275 286 263 2. Suppose that instead of a discrete demand distribution, Foxie’s shop determines that the daily demand for bagels is normally distributed, with a mean of 250 and a standard deviation of 35. Foxie still wants a Fill Rate of 98%. What is the appropriate level of on-hand inventory for Foxie’s shop? Group of answer choices 263 274 257 270A company manufactures dog leashes that sell for $19.81, including shipping and handling. The monthly fixed costs (advertising, rent, etc.) are $22,503 and the variable costs (materials, shipping, etc.) are $7.65 per leash. How many leashes must be produced and sold each month for the company to break even? leashes. Round to the nearest leash.