Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $51. The cost of each light is $1.00. The holding cost is $0.05 per light per year. a) What is the optimal size of the production run? 6,644 units (round your response to the nearest whole number). b) What is the average holding cost per year? $ 166.10 (round your response to two decimal places).

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...
icon
Related questions
Question
f
Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing
lights per year and has the capability of producing 95 per day. Setting up the light production costs $51. The cost of each light is $1.00. The holding cost is $0.05 per light per year.
a) What is the optimal size of the production run? 6,644 units (round your response to the nearest whole number).
b) What is the average holding cost per year? $ 166.10 (round your response to two decimal places).
nis
3
1
Calculator
-8
FI
N
@
2
W
S
*
F2
Ask my instructor
X
H
command
#
3
E
D
80
F3
F3
$
4
C
R
DOO
000
F4
LL
F
or de
5
V
Question Viewer
FS
T
G
A
6
B
MacBook Pro
F6
Y
H
&
7
N
44
F7
U
J
8
M
DII
FB
-
K
(
9
DD
F9
O
<
)
0
L
command
4
F10
P
>
t
....
-
option
Clear all
4
F11
{
[
2.1
?
+
=
11
I
▾
4)
F12
[
}
]
Final check
delete
1
1
return
shift
H
Transcribed Image Text:f Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 95 per day. Setting up the light production costs $51. The cost of each light is $1.00. The holding cost is $0.05 per light per year. a) What is the optimal size of the production run? 6,644 units (round your response to the nearest whole number). b) What is the average holding cost per year? $ 166.10 (round your response to two decimal places). nis 3 1 Calculator -8 FI N @ 2 W S * F2 Ask my instructor X H command # 3 E D 80 F3 F3 $ 4 C R DOO 000 F4 LL F or de 5 V Question Viewer FS T G A 6 B MacBook Pro F6 Y H & 7 N 44 F7 U J 8 M DII FB - K ( 9 DD F9 O < ) 0 L command 4 F10 P > t .... - option Clear all 4 F11 { [ 2.1 ? + = 11 I ▾ 4) F12 [ } ] Final check delete 1 1 return shift H
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.