A toy manufacturing uses 48000 rubber wheels per year for its popular dump truck series. The...

A toy manufacturing uses 48000 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can can produce at a rate of 800 per day. The toy trucks are assembled uniformly ( at a constant rate ) over the entire year. Carrying cost is $ 1 per wheel per year. setup cost for the production run of the wheel is $ 45. The firm operatyes 240 days per year. Determine each of the following: a. production part of the cycle b. average inventory level c. optimal production run size

Solutions

Expert Solution

D=48000 wheels per year

s=$45

H=$1 per wheel

p=800 wheels per day

d=48000 wheels per 240 days

els=optimal run size=2400

a)production time in each cycle ELS/P=2400/800=3 days/production

B)max inventory level Imax=

=1800 wheels

Average inventory=I max/2=900 wheels

C) optimal production run size=

=2400 wheels

Colby Messinger answered 1 year ago

Next > < Previous

Related Solutions

You represent a Canadian toy company that is negotiating to buy miniature truck wheels from a...

You represent a Canadian toy company that is negotiating to buy miniature truck wheels from a manufacturer in Osaka, Japan. In your first meeting, you explain that your company expects to control the design of the wheels as well as the materials that are used to make them. The manufacturer’s representative looks down and says softly, “Perhaps that will be difficult.” You press for agreement, and to emphasize your willingness to buy, you show the prepared contract you have brought...

A toy cannon uses a spring to project a 5.20-g soft rubber ball. The spring is...

A toy cannon uses a spring to project a 5.20-g soft rubber ball. The spring is originally compressed by 5.03 cm and has a force constant of 8.08 N/m. When the cannon is fired, the ball moves 15.6 cm through the horizontal barrel of the cannon, and the barrel exerts a constant friction force of 0.032 1 N on the ball. (a) With what speed does the projectile leave the barrel of the cannon? (b) At what point does the...

A toy cannon uses a spring to project a 5.38-g soft rubber ball. The spring is...

A toy cannon uses a spring to project a 5.38-g soft rubber ball. The spring is originally compressed by 4.91 cm and has a force constant of 8.08 N/m. When the cannon is fired, the ball moves 15.6 cm through the horizontal barrel of the cannon, and the barrel exerts a constant friction force of 0.032 6 N on the ball. (a) With what speed does the projectile leave the barrel of the cannon? m/s (b) At what point does...

26. A toy cannon uses a spring to project a 5.34 g soft rubber ball. The...

26. A toy cannon uses a spring to project a 5.34 g soft rubber ball. The spring is originally compressed by 5.08 cm and has a force constant of 8.09 N/m. When the cannon is fired, the ball moves 15.1 cm through the horizontal barrel of the cannon, and there is a constant frictional force of 0.0318 N between the barrel and the ball. (a) With what speed does the projectile leave the barrel of the cannon? m/s (b) At...

A toy cannon uses a spring to project a 5.39-g soft rubber ball. The spring is...

A toy cannon uses a spring to project a 5.39-g soft rubber ball. The spring is originally compressed by 5.04 cm and has a force constant of 8.10 N/m. When the cannon is fired, the ball moves 15.6 cm through the horizontal barrel of the cannon, and the barrel exerts a constant friction force of 0.032 5 N on the ball. (a) With what speed does the projectile leave the barrel of the cannon? m/s (b) At what point does...

Wheels & Deals Limited uses 60,000 batteries each year in its production of motorcycles at a...

Wheels & Deals Limited uses 60,000 batteries each year in its production of motorcycles at a cost of $450 per battery. The cost of placing an order is $75.00. The cost of holding one unit of inventory for one year is 0.5% of the unit purchase price. Currently, Wheels & Deals Limited places 12 orders of 5,000 batteries per year. Compute the cost Wheels & Deals’ current inventory policy. Is this the minimum cost? Explain

Cruz Inc. manufactures a popular premium toy. During its first year, the company incurred these costs:...

Cruz Inc. manufactures a popular premium toy. During its first year, the company incurred these costs: $427000 Cost to manufacture 7000 toys $110000 Research and development costs $35000 Cost to ship completed products to retailers Cruz sells 80% of its products for $183 each. 1. What will Cruz report as sales revenue for Year1? 2. What will Cruz report as the cost of goods sold for Year1? 3. What will Cruz report as net income for Year1? 4. What will...

The marketer must always be conscious of its environment. As a consultant to a toy manufacturing...

The marketer must always be conscious of its environment. As a consultant to a toy manufacturing firm, discuss any five (5) macro environmental factors and show how they could influence the operations of the business

A toy manufacturer makes its own wind-up motors, which are then put into its toys While the toy manufacturing process is continuous

A toy manufacturer makes its own wind-up motors, which are then put into its toys While the toy manufacturing process is continuous, the motors are intermittent flow. Data on the manufacture of the motors appears below. Annual demand (D)-50,000 units Daily subassembly production rate = 1,000 Setup cost (S) = $85 per batch Daily subassembly usage rate = 200Carrying cost = $.20 per unit per year 1. To minimize cost, how large should each batch of subassemblies be? 2. What is the average inventory...

Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant...

Suppose Goodyear Tire and Rubber Company is considering divesting one of its manufacturing plants. The plant is expected to generate free cash flows of $ 1.55 million per year, growing at a rate of 2.4 % per year. Goodyear has an equity cost of capital of 8.7 %, a debt cost of capital of 7.1 %, a marginal corporate tax rate of 32 %, and a debt-equity ratio of 2.7. If the plant has average risk and Goodyear plans to...

Subjects