3. Tamjid manufactures scented candles and sells these candles in his own retail store. His annual sales volume is 4,800 boxes of candles and he operates 240 days per year. He can manufacture these candles at a rate of 48 boxes per day. Assume that demand is uniform. Setup cost is Tk. 32 for a run, and holding cost is 400 paisa per box. a) Figure out the optimum production size. b) Minimum total annual cost for carrying and set up. ed for quotatic c) What is the run time? d) What is the cycle time? e) How much the company can save annually if the setup cost could be reduced to Tk 25 per run?

3. Tamjid manufactures scented candles and sells these candles in his own retail store. His annual sales volume is 4,800 boxes of candles and he operates 240 days per year. He can manufacture these candles at a rate of 48 boxes per day. Assume that demand is uniform. Setup cost is Tk. 32 for a run, and holding cost is 400 paisa per box. a) Figure out the optimum production size. b) Minimum total annual cost for carrying and set up. ed for quotatic c) What is the run time? d) What is the cycle time? e) How much the company can save annually if the setup cost could be reduced to Tk 25 per run?

Purchasing and Supply Chain Management

6th Edition

ISBN:9781285869681

Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson

Chapter16: Lean Supply Chain Management

Section: Chapter Questions

Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...

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