Optimal size of housings to produce. Introduction: Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Question

Want to see the full answer?

Answer 1

Question

Chapter 4.6, Problem 19P

a

Summary Introduction

To determine:

Optimal size of housings to produce.

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Initiation time, operating time and downtime for production cycle.

Introduction:

Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

c

Summary Introduction

To determine:

Maximum level of on − hand inventory that the firm carries any time.

Introduction:

Investment is the capital spent today on purchase of goods in lieu of earning profit in future.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

HAL Ltd. produces a line of high-capacity disk drives for computers. The housings for the drives are produced in Hamilton, Ontario at a rate of 250 housings per month, and shipped to the main plant in Toronto. The housings cost HAL $100 each to produce, and the setup cost for beginning a production run is $500. HAL uses the drive housings at a fairly steady rate of 1400 per year. Assume an annual interest rate of 25% for determining the holding cost. What is the optimal number of housings for HAL to produce in each production run? For the optimal production size, what proportion of each production cycle consists of uptime and what proportion consists of downtime? Assuming that HAL produces the optimal number of housings in each production run, what is the maximum on-hand inventory level of these housings? What is the annual cost of holding and setup?

JNR Corporation makes wheels for toy cars. The company operates its production facility 300 days per year. It has orders for about 12,000 wheels per year and has the capability of producing 100 per day. Setting up the wheel production costs P50. The cost of each wheel is P10. The holding cost is P1 per wheel per year. a. What is the optimal size of the production run? b. What is the average holding cost per year? c. What is the average setup cost per year? d. What is the total cost per year, including the cost of the wheel?

Long last Appliance Store has a demand of 1300 units per month for one of its fast selling portable smoothie machine (model G), it incurs a fixed order placement, transportation and receiving cost of $3000 each time an order is delivered. Each machine cost the company $550 and the company has a holding cost of 12%. The company has two other models of the smoothie machine which are also popular with consumers. Evaluate the company’s inventory management policy if lots for each model are ordered and delivered independently by determining the following: The optimal order size The cycle inventory The number of orders per year The annual ordering and holding cost The total cost of the inventory Briefly state rationale for the approach used for (a-e)

Answer 2

Question

Chapter 4.6, Problem 19P

a

Summary Introduction

To determine:

Optimal size of housings to produce.

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Initiation time, operating time and downtime for production cycle.

Introduction:

Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

c

Summary Introduction

To determine:

Maximum level of on − hand inventory that the firm carries any time.

Introduction:

Investment is the capital spent today on purchase of goods in lieu of earning profit in future.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 3

Question

Chapter 4.6, Problem 19P

a

Summary Introduction

To determine:

Optimal size of housings to produce.

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Initiation time, operating time and downtime for production cycle.

Introduction:

Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

c

Summary Introduction

To determine:

Maximum level of on − hand inventory that the firm carries any time.

Introduction:

Investment is the capital spent today on purchase of goods in lieu of earning profit in future.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 4

Question

Chapter 4.6, Problem 19P

a

Summary Introduction

To determine:

Optimal size of housings to produce.

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Initiation time, operating time and downtime for production cycle.

Introduction:

Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

c

Summary Introduction

To determine:

Maximum level of on − hand inventory that the firm carries any time.

Introduction:

Investment is the capital spent today on purchase of goods in lieu of earning profit in future.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 5

Chapter 4.6, Problem 19P

a

Summary Introduction

To determine:

Optimal size of housings to produce.

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

b

Summary Introduction

To determine:

Initiation time, operating time and downtime for production cycle.

Introduction:

Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

c

Summary Introduction

To determine:

Maximum level of on − hand inventory that the firm carries any time.

Introduction:

Investment is the capital spent today on purchase of goods in lieu of earning profit in future.

Answer 6

Chapter 4.6, Problem 19P

a

Summary Introduction

To determine:

Optimal size of housings to produce.

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Answer 7

Chapter 4.6, Problem 19P

a

Summary Introduction

To determine:

Optimal size of housings to produce.

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Answer 8

b

Summary Introduction

To determine:

Initiation time, operating time and downtime for production cycle.

Introduction:

Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

Answer 9

b

Summary Introduction

To determine:

Initiation time, operating time and downtime for production cycle.

Introduction:

Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

Answer 10

c

Summary Introduction

To determine:

Maximum level of on − hand inventory that the firm carries any time.

Introduction:

Investment is the capital spent today on purchase of goods in lieu of earning profit in future.

Answer 11

c

Summary Introduction

To determine:

Maximum level of on − hand inventory that the firm carries any time.

Introduction:

Investment is the capital spent today on purchase of goods in lieu of earning profit in future.

Answer 12

Expert Solution & Answer

Answer 13

Expert Solution & Answer

Answer 14

Want to see the full answer?

Check out a sample textbook solution

See solution

Answer 15

Ch. 4.4 - Prob. 1P Ch. 4.4 - Prob. 2P Ch. 4.4 - Prob. 3P Ch. 4.4 - Prob. 4P Ch. 4.4 - Prob. 5P Ch. 4.4 - Prob. 6P Ch. 4.4 - Prob. 7P Ch. 4.4 - Prob. 8P Ch. 4.4 - Prob. 9P Ch. 4.5 - Prob. 10P

Optimal size of housings to produce. Introduction: Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Solution Summary: The author explains the Optimal Size of Housings to Produce for Company H.

Concept explainers

Videos

To determine:

Optimal size of housings to produce.

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

To determine:

Initiation time, operating time and downtime for production cycle.

Introduction:

Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

To determine:

Maximum level of on − hand inventory that the firm carries any time.

Introduction:

Investment is the capital spent today on purchase of goods in lieu of earning profit in future.

Want to see the full answer?

Chapter 4 Solutions

Optimal size of housings to produce. Introduction: Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

Solution Summary: The author explains the Optimal Size of Housings to Produce for Company H.

Concept explainers

Videos

To determine: Optimal size of housings to produce. Introduction: Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

To determine: Initiation time, operating time and downtime for production cycle. Introduction: Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

To determine: Maximum level of on − hand inventory that the firm carries any time. Introduction: Investment is the capital spent today on purchase of goods in lieu of earning profit in future.

Want to see the full answer?

Chapter 4 Solutions

To determine:

Optimal size of housings to produce.

Introduction:

Economic order quantity in the optimal inventory kept by any firm which is ideal and do not incur any additional holding cost and order cost.

To determine:

Initiation time, operating time and downtime for production cycle.

Introduction:

Cycle time is the time duration between production of one units and order of the next unit. The time gap between both is cycle or elapsed time.

To determine:

Maximum level of on − hand inventory that the firm carries any time.

Introduction:

Investment is the capital spent today on purchase of goods in lieu of earning profit in future.