5. A plastic company operates 300 days a year. It produces and supplies 300,000 plastic caps for soft drinks. It can produce 12,000 pcs per day. The annual carrying cost of each cap is PhP0.25, and the set up cost is PhP22.00. a. What is the optimal run size? b. What is the run time? c. What is the cycle time for the optimal run size? d. What is the annual carrying cost? e. What is the annual set up cost? f. What is the total inventory cost incurred for the plastic caps?

5. A plastic company operates 300 days a year. It produces and supplies 300,000 plastic caps for soft drinks. It can produce 12,000 pcs per day. The annual carrying cost of each cap is PhP0.25, and the set up cost is PhP22.00. a. What is the optimal run size? b. What is the run time? c. What is the cycle time for the optimal run size? d. What is the annual carrying cost? e. What is the annual set up cost? f. What is the total inventory cost incurred for the plastic caps?

Survey Of Economics

10th Edition

ISBN:9781337111522

Author:Tucker, Irvin B.

Publisher:Tucker, Irvin B.

Chapter6: Proudction Costs

Section: Chapter Questions

Problem 8SQP

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