Acta Metals manufactures safes of different sizes and models. One of the models has a demand of 20,000 safes/year. The company can produce at a rate of 4,000 safes a month and it cost $30 to initiate each production run. The actual production cost for each safe is $5.37 and the holding of each unit could be charged a nominal annual interest rate of 15%, if it were to be invested elsewhere. Determine the optimal batch size and the cycle time Determine the maximum on-hand inventory and the average annual holding and setup cost, Determine the production uptime and downtime.
Acta Metals manufactures safes of different sizes and models. One of the models has a demand of 20,000 safes/year. The company can produce at a rate of 4,000 safes a month and it cost $30 to initiate each production run. The actual production cost for each safe is $5.37 and the holding of each unit could be charged a nominal annual interest rate of 15%, if it were to be invested elsewhere. Determine the optimal batch size and the cycle time Determine the maximum on-hand inventory and the average annual holding and setup cost, Determine the production uptime and downtime.
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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Acta Metals manufactures safes of different sizes and models. One of the models has a demand of 20,000 safes/year. The company can produce at a rate of 4,000 safes a month and it cost $30 to initiate each production run. The actual production cost for each safe is $5.37 and the holding of each unit could be charged a nominal annual interest rate of 15%, if it were to be invested elsewhere.
Determine the optimal batch size and the cycle time
Determine the maximum on-hand inventory and the average annual holding and setup cost,
Determine the production uptime and downtime.
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