Principles Of Operations Management
11th Edition
ISBN: 9780135173930
Author: RENDER, Barry, HEIZER, Jay, Munson, Chuck
Publisher: Pearson,
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Chapter 16, Problem 1P
Summary Introduction
To determine: The setup time.
Introduction:
Economic order quantity is said to be the units that are added to the inventory to minimize the inventory cost. Inventory costs include holding cost, order cost, and shortage cost.
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Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average
inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes.
He has developed the following data for one component, the safety chain clip:
Setup labor cost
Annual holding cost
Daily production
Annual demand
Desired lot size
$20 per hour
$15 per unit
960 units/8 hour day
39,600 (275 days each daily demand of 144 units)
120 units (one hour of production)
To obtain the desired lot size, the set-up time that should be achieved = 2.32 minutes (round your response to two
decimal places).
Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average
inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He
has developed the following data for one component, the safety chain clip:
Setup labor cost
Annual holding cost
Daily production
Annual demand
Desired lot size
$25 per hour
$12 per unit
992 units/8 hour day
24,840 (270 days each x daily demand of 92 units)
124 units (one hour of production)
To obtain the desired lot size, the set-up time that should be achieved = minutes (round your response to two
decimal places).
IE
Carol Cagle has a repetitive manufacturing plant producing trailer hitchos in Arlington, Texas. The plant has an average inventory tumover of only 12 times per year. He has therefore determined that
he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip
$25 per hour
$13 per unit
Setup labor cost
Annual holding cost
Daily production
Annual demand
Desired lot size
992 units/8 hour day
33.000 (275 days each daily demand of 120 units)
124 units (one hour of production)
To obtain the desired lot size, the set-up time that should be achievedminutes pound your response to two decimal places)
Chapter 16 Solutions
Principles Of Operations Management
Ch. 16 - Prob. 1EDCh. 16 - Prob. 1DQCh. 16 - Prob. 2DQCh. 16 - Prob. 3DQCh. 16 - Prob. 4DQCh. 16 - Prob. 5DQCh. 16 - Prob. 6DQCh. 16 - Prob. 7DQCh. 16 - Prob. 8DQCh. 16 - Prob. 9DQ
Ch. 16 - Prob. 10DQCh. 16 - Prob. 11DQCh. 16 - Prob. 12DQCh. 16 - Prob. 1PCh. 16 - Prob. 2PCh. 16 - Prob. 3PCh. 16 - Prob. 4PCh. 16 - Prob. 5PCh. 16 - Prob. 6PCh. 16 - Prob. 7PCh. 16 - Prob. 8PCh. 16 - Prob. 9PCh. 16 - Prob. 10PCh. 16 - Prob. 11PCh. 16 - Prob. 12PCh. 16 - Prob. 1.1VCCh. 16 - Prob. 1.2VCCh. 16 - Prob. 1.3VCCh. 16 - Prob. 2.1VCCh. 16 - Prob. 2.2VCCh. 16 - Prob. 2.3VCCh. 16 - Prob. 2.4VC
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- Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost Annual holding cost $30 per hour $13 per unit 960 units/8 hour day 36,000 (250 days each x daily demand of 144 units) Daily production Annual demand Desired lot size 120 units (one hour of production) To obtain the desired lot size, the set-up time that should be achieved = ☐ minutes (round your response to two decimal places).arrow_forwardCarol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost Annual holding cost Daily production Annual demand $30 per hour $12 per unit 976 units/8 hour day 46,200 (275 days each × daily demand of 168 units) Desired lot size 122 units (one hour of production) To obtain the desired lot size, the set-up time that should be achieved = minutes (round your response to two decimal places).arrow_forwardCarol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost $20 per hour Annual holding cost $15 per unit Daily production 992 units/8 hour day Annual demand 36,000 (250 days each×daily demand of 144 units) Desired lot size 124 units (one hour of production) To obtain the desired lot size, the set-up time that should be achieved = nothing minutes (round your response to two decimal places).arrow_forward
- Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost $20 per hour Annual holding cost $13 per unit Daily production 992 units/8 hour day Annual demand 25,300 (275 days each×daily demand of 92 units) Desired lot size 124 units (one hour of production) To obtain the desired lot size, the set-up time that should be achieved =minutes (round your response to two decimal places).arrow_forwardCarol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost $25 per hour Annual holding cost $12 per unit Daily production 960 units/8 hour day Annual demand 45,360 (270 days each×daily demand of 168 units) Desired lot size 120 units (one hour of production) Part 2 To obtain the desired lot size, the set-up time that should be achieved = enter your response here minutes (round your response to two decimal places).arrow_forwardCarol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip: Setup labor cost Annual holding cost Daily production Annual demand Desired lot size To obtain the desired lot size, the set-up time that should be achieved = $25 per hour $15 per unit 960 units/8 hour day 30,000 (250 days each x daily demand of 120 units) 120 units (one hour of production) minutes (round your response to two decimal places).arrow_forward
- Carol Cagle has a repetitive manufacturing plant pro-ducing trailer hitches in Arlington, Texas. The plant has an average inventory turnover of only 12 times per year. She has therefore deter-mined that she will reduce her component lot sizes. She has devel-oped the following data for one component, the safety chain clip: Annual demand = 31,200 unitsDaily demand = 120 unitsDaily production (in 8 hours) = 960 unitsDesired lot size (1 hour of production) = 120 unitsHolding cost per unit per year = $12Setup labor cost per hour = $20 How many minutes of setup time should she have her plant man-ager aim for regarding this component?arrow_forwardCarol Cagle bas a repetitive manufacturing plantproducing trailer bitches in Arlington, Texas. The plant has anaverage inventory tu rnover of only 12 times per year. She hastherefore determined that she will reduce her component lotsizes. She has developed the following data for one component,the safety chain clip:Annual demand = 31,200 unitsDaily demand = 120 unitsDaily production (in 8 hours) = 960 unitsDesired lot size (I hour of production) = 120 unitsHolding cost per unit per year = $12Setup labor cost per hour = $20How many minutes of setup time should she have her plant manageraim for regarding this component?arrow_forwardIE Carol Cagle has a repetitive manufacturing plant producing trailer hitches in Arlington, Texas. The plant has an average inventory tumover of only 12 times per year. He has therefore determined that he will reduce his component lot sizes. He has developed the following data for one component, the safety chain clip Setup labor cost Annual holding cost Daily production Annual demand Desired lot size To obtain the desired lot size, the set-up time that should be achieved $25 per hour $13 per unit 992 units/8 hour day 33.000 (275 days each daily demand of 120 units) 124 units (one hour of production) minutes pound your response to two decimal places)arrow_forward
- Pauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost $30 Annual holding cost $125 per subassembly Daily production 30 subassemblies Annual usage 3,000 (50 weeks×5 days each×daily usage of 12 subassemblies) Lead time 12 days Safety stock 4 days' production Part 2 Kanban container size = enter your response here units (round your response to the nearest whole number).arrow_forwardPauline Found Manufacturing, Inc., is moving to kanbans to support its telephone switching-board assembly lines. Determine the size of the kanban for subassemblies and the number of kanbans needed. Setup cost Annual holding cost Daily production Annual usage $30 $120 per subassembly 20 subassemblies 4,500 (50 weeks x5 days each x daily usage of 18 subassemblies) 10 days Lead time: Safety stock 3 days' production Kanban container size = 150 units (round your response to the nearest whole number). Number of kanbans needed = 2 kanbans (round your response to the nearest whole number)arrow_forwardA supplier provides parts to a manufacturing company that demands frequent deliveries. At the present time it takes six hours to make a round trip between the supplier’s warehouse and the customer, including loading, travel, and unloading time. The lot size is 12 pallet loads on a truck, and the manufacturer uses 2 pallets per hour.a. How many trucks are needed to ship the pallets to the manufacturer?b. What is likely to happen if the truck breaks down?c. How can the supplier ensure that the customer does not run out of parts even in the face of delivery problems or other uncertainties?d. What will happen to the supplier if the manufacturer runs into trouble and shuts down for a period of six hours?arrow_forward
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