Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 4.7, Problem 25P
Summary Introduction
To determine:
Size of the order.
Introduction:
Aggregate planning is the technique in which planning of all inputs and output of production is planned to meet any uncertainty of demand and avoid any wastage in the process.
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Students have asked these similar questions
Johnson Tire Plaza (JTP) is a large chain of tire shops, who sells various brand of automobile tires. The yearly demand of a particular brand of time is about 10,821 units per year. JTP purchases these tires from a supplier. The ordering cost is $109 per order and the holding cost is $14.6 per tire per year. The supplier always delivers the shipment within 13 days after receiving a replenishment order from JTP. The company operates 250 days per year. Assume EOQ model is applicable.
What is the number of orders per year if JTP uses an order quantity of 1,728 tires? Use at least 4 decimal places.
The Bosch factory in New Bern, NC uses dishwasher motors at a steady rate of 17308 units per year. Bosch procures
these units from a supplier at a purchase cost of $58 per unit. Bosch receives an order 26 days after it is placed.
Regardless of the number of units ordered, Bosch incurs a fixed cost of $2988 for placing, shipping, and receiving the
order. The holding cost per unit per year is 30% of the purchase cost per unit. Assume Bosch operates 364 days, 52
weeks, or 12 months per year.
Calculate the average time a unit spends in inventory between orders in DAYS for the optimal order quantity from the
problem above.
Rounding instructions
• Carry your calculations to at least 3 decimal places.
• Enter your answer rounded to one decimal place (nearest tenth).
Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility
300
days per year. It has orders for about
12,200
flashing lights per year and has the capability of producing
95
per day. Setting up the light production costs
$51.
The cost of each light is
$1.00.
The holding cost is
$0.15
per light per year.
d. What is the total cost per year, including the cost of the lights?
(round your response to two decimal places).
Chapter 4 Solutions
Production and Operations Analysis, Seventh Edition
Ch. 4.4 - Prob. 1PCh. 4.4 - Prob. 2PCh. 4.4 - Prob. 3PCh. 4.4 - Prob. 4PCh. 4.4 - Prob. 5PCh. 4.4 - Prob. 6PCh. 4.4 - Prob. 7PCh. 4.4 - Prob. 8PCh. 4.4 - Prob. 9PCh. 4.5 - Prob. 10P
Ch. 4.5 - Prob. 11PCh. 4.5 - Prob. 12PCh. 4.5 - Prob. 13PCh. 4.5 - Prob. 14PCh. 4.5 - Prob. 15PCh. 4.5 - Prob. 16PCh. 4.6 - Prob. 17PCh. 4.6 - Prob. 18PCh. 4.6 - Prob. 19PCh. 4.6 - Prob. 20PCh. 4.7 - Prob. 21PCh. 4.7 - Prob. 22PCh. 4.7 - Prob. 23PCh. 4.7 - Prob. 24PCh. 4.7 - Prob. 25PCh. 4.8 - Prob. 26PCh. 4.8 - Prob. 27PCh. 4.8 - Prob. 28PCh. 4.9 - Prob. 29PCh. 4.9 - Prob. 30PCh. 4 - Prob. 31APCh. 4 - Prob. 32APCh. 4 - Prob. 33APCh. 4 - Prob. 34APCh. 4 - Prob. 35APCh. 4 - Prob. 36APCh. 4 - Prob. 37APCh. 4 - Prob. 38APCh. 4 - Prob. 39APCh. 4 - Prob. 40APCh. 4 - Prob. 41APCh. 4 - Prob. 42APCh. 4 - Prob. 43APCh. 4 - Prob. 44APCh. 4 - Prob. 45AP
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