Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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- Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of 300 days. Setup labor cost Annual holding cost Daily production (8 hours) Annual demand for steering wheels Desired lot size (2 hours of production) $60.00 per hour $19 per unit 1,040 units/day 33,000 (300 days x daily demand of 110 units) Q = 260 units a) Setup cost = $ b) Setup time = (round your response to two decimal places). minutes (round your response to two decimal places).arrow_forwardThe Northridge Company tends to keep the inventory low. At the same time, it is important to respond to demand quickly, since a customer who wants a product K is very likely to get one from a competitor if Northridge Company doesn’t have one available immediately. Northridge Company’s current policy to produce the product K is to produce 100 per week, which is the average demand. Even this is a problem, as the production manager has pointed out, since the equipment is also used for other products and the lot size of 300 would be much more efficient. He said he is currently set up the production for product K for the next week and states that he has capacity available to produce 300 at a time next week. The following lists the forecasts and actual customer orders for the next 12 weeks. Week 1 2 3 4 5 6 7 8 9 10 11 12 Forecast 90 120 110 80 85 95 100 110 90 90 100 110 Customer Orders 105 97 93 72 98 72 53 21…arrow_forwardCompanies that invest in their people will create long-lasting competitive advantages that are difficult for other companies to duplicate Question 12 options: True Falsearrow_forward
- 17) interdependence occurs when units operate with little interaction and their output is simply combined. Reciprocal Shared Pooled Sequentialarrow_forwardIf economic order quantity is 2,500 units and consumption in units for one year are 15,000 units, then number of orders in a year will be: a. 10 orders b. 5 orders c. 12 orders d. 6 ordersarrow_forward3-44 CVP analysis. The Germa company produces two products, Spick and Span, on one machine. Spick and Span cannot be made simultaneously. There is no time required to adjust the machine when switching from one product to the other. One unit of Spick requires 2 machine hours to produce, whereas one unit of Span requires 4 hours. The normal occupation of the machine is 6,000 hours per year. The fixed costs of the machine are $120,000 annually. One unit of Spick needs 2 kg of material A, whereas one unit of Span requires 3 kg. The budgeted price for 1 kg of material A is $4. The sales costs consist only of fixed costs, which are budgeted at $40,000 a year. The allocated fixed sales costs per product are $20. 1. Calculate the cost per product for Spick and Span. The selling price for Spick is $70 and for Span it is $120. 2. Calculate the breakeven revenue when 50% of the units sold are Spick and 50% are Span. 3. When material shortage causes a bottleneck, which product should be produced…arrow_forward
- Need the answer for a and b.arrow_forwardusing spreadsheet models Using the Reciprocal Method allocate service centre costs Manufacturing $910,000 Assembly $175,000 Maintenance $472,000 Robotics $675,000 Department No. of Maintenance Jobs No. of Robotic Machines Manufacturing 265 16 Assembly 75 52 Maintenance 10 Robotics 28arrow_forwardIncreases in demand ________ reorder points Group of answer choices Decrease Have no effect on Increasearrow_forward
- Which of the following problems are not among those hidden when inventory levels are excessively high? A) Inadequate worker motivation B) Engineering design redundancies C) Scrap D) Productive equipment downtime E) Paperwork backlogsarrow_forwardDon't use chatgpt...arrow_forwardRick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to prepare for a reduced lot size. The firm uses a work year of 300 days. Setup labor cost Annual holding cost Daily production (8 hours) Annual demand for steering wheels Desired lot size (2 hours of production) $60.00 per hour $11 per unit 880 units/day 36,000 (300 days x daily demand of 120 units) Q=220 units a) Setup cost = $ (round your response to two decimal places). b) Setup time = minutes (round your response to two decimal places).arrow_forward
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