Operations Management
11th Edition
ISBN: 9780132921145
Author: Jay Heizer
Publisher: PEARSON
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Chapter 12, Problem 17P
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 12,000 flashing lights per year and has the capability of producing 100 per day. Setting up the light production costs $50. The cost of each light is $1. The holding cost is $0.10 per light per year.
- a. What is the optimal size of the production run?
- b. What is the average holding cost per year?
- c. What is the average setup cost per year?
- d. What is the total cost per year, including the cost of the lights?
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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 100 per day. Setting up the light production costs $48. The cost of each light is $1.05. The holding cost is
$0.15 per light per year.
a) What is the optimal size of the production run?
units (round your response to the nearest whole number).
Chapter 12 Solutions
Operations Management
Ch. 12 - Question 1. Describe the four types of inventory.Ch. 12 - Question
2. With the advent of low-cost...Ch. 12 - Question
3. What is the purpose of the ABC...Ch. 12 - Question
4. Identify and explain the types of...Ch. 12 - Question 5. Explain the major assumptions of the...Ch. 12 - Question 6. What is the relationship of the...Ch. 12 - Question
7. Explain why it is not necessary to...Ch. 12 - Question 8. What are the advantages of cycle...Ch. 12 - What impact does a decrease in setup time have on...Ch. 12 - When quantity discounts are offered, why is it not...
Ch. 12 - What is meant by service level?Ch. 12 - Explain the following: All things being equal, the...Ch. 12 - Describe the difference between a fixed-quantity...Ch. 12 - Explain what is meant by the expression robust...Ch. 12 -
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