Question

In: Advanced Math

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

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 2 years ago

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