Practical Management Science
6th Edition
ISBN: 9781337406659
Author: WINSTON, Wayne L.
Publisher: Cengage,
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Transcribed Image Text:(e) Maximum inventory
(f) Total annual cost (in $)
$
(g) Reorder point
Transcribed Image Text:Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of
7,800 copies. The cost of one copy of the book is $11.50. The holding cost is based on an 18% annual rate, and production setup costs are $150
per setup. The equipment with which the book is produced has an annual production volume of 25,000 copies. Wilson has 250 working days per
year, and the lead time for a production run is 15 days. Use the production lot size model to compute the following values. (Round your answers
to two decimal places.)
(a) Minimum cost production lot size
(b) Number of production runs per year
(c) Cycle time
(d) Length of a production run (in days).
days
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- TOPIC : Inventory Systems for Independent Demandarrow_forwardInventory Control – Definitions, Objectives and Activitiesarrow_forwardScary Clowns, Inc., supplies special makeup cases to a major circus. The circus orders its EOQ of 800 cases every 3 months from Scary Clowns. Scary Clowns incurs setup costs of $5,000 every time it produces these cases, and its annual holding cost per case is $14. Question content area bottom Part 1 a. Which inventory model fits the best to this problem? A. All-units quantity discounts model B. Incremental quantity discounts model C. One-time sale model D. EOQ model E. POQ model F. Lumpy demand model b. Scary Clowns should produce enter your response here units in each batch (round your response to the nearest integer). c. The total annual setup and holding cost for Scary Clowns using this policy is $enter your response here (round your response to the nearestarrow_forward
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