OPERATIONS MANAGEMENT (LL)-W/ACCESS
OPERATIONS MANAGEMENT (LL)-W/ACCESS
17th Edition
ISBN: 9781260037821
Author: CACHON
Publisher: MCG
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Chapter 2, Problem 9PA
Summary Introduction

To determine: The number of wafers in inventory.

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LENILOVESBATO Co. produces various types of floor rugs with many different designs. They typically produce at least 200 rugs with a single machine setup. A cost incurred each time a new rug design is developed is called a(n)        a. Unit-level cost       b. Batch-level cost       c. Product-level cost       d. Facility-level cost
A producer of electronic parts wants to take account of both production rate and demand rate in deciding on its lot sizes. A particular $50 part can be produced at a rate of 1000 units per month, and the demand rate is 200 units per month. The firm uses a carrying charge of 24 percent a year, and the setup cost is $200 each time the part is produced.a. What lot size should be produced?b. If the production rate is ignored, what would the lot size be? How much does this smaller lot size cost the firm on an annual basis?c. Draw a graph of on-hand inventory versus time
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