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 costAnnual holding costDaily production (8 hours)Annual demand for steering wheelsDesired lot size (2 hours of production)$60.00 per hour$11 per unit880 units/day36,000 (300 days x daily demand of 120 units)Q=220 unitsa) Setup cost = $(round your response to two decimal places).b) Setup time =minutes (round your response to two decimal places).

Answered: Rick Wing has a repetitive…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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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).
Rick Wing has a repetitive manufacturing plant producing automobile steering wheels. Use the following data to pre-pare for a reduced lot size. The firm uses a work year of 305 days. Annual demand for steering wheels 30,500Daily demand 100Daily production (8 hours) 800Desired lot size (2 hours of production) 200Holding cost per unit per year $10 a) What is the setup cost, based on the desired lot size?b) What is the setup time, based on $40 per hour setup labor?
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 305 days. a) Setup cost= b) Setup time = Setup labor cost Annual holding cost $60.00 per hour $19 per unit 1,040 units/day 30,500 (305 days x daily demand of 100 units) Q = 260 units Daily production (8 hours) Annual demand for steering wheels Desired lot size (2 hours of production) (round your response to two decimal places). minutes (round your response to two decimal places).
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. 33,000 Annual demand for steering wheels Daily demand Daily production (8 hours) Desired lot size (2 hours of production) 110 800 200 Holding cost per unit per year $18 a) What is the setup cost, based on the desired lot size? Setup cost = S 9.41 (round your response to two decimal places). b) What is the setup time, based on $60 per hour setup labour? Setup time = minutes (round your response to two decimal places).
Average daily demand (d) 130 cases Demand Standard deviation (σd) 20 cases Service level 94.0% Service level alternative 86.0% Lead tme, LT 6 days 1. What is the standard deviation of demand during lead time? Round your answer to one decimal place. _______ cases 2. What is the required safety stock at a 94 percent service level? Round your answer to the nearest whole number. _______ cases 3. What is the reorder point? Round your answer to the nearest whole number. _______ cases 4.What is the required safety stock at a 86 percent service level? Round your answer to the nearest whole number. _______ cases 5. What is the safety stock reduction? Round your answer to the nearest whole number. _______ cases
29) XYZ Company The XYZ Company uses 175 handles per day. The company operates 300 days per year. It costs $2.00 to carry one handle in inventory for one year. When handle inventory is low, an order is sent to the fabrication department to manufacture more handles. Fabrication can produce handles at a rate of 1500 per day and send the handles over to assembly while production is in progress. The setup for each production run costs $500. In order to calculate the EOQ, the XYZ company utilizes the __________ model. Group of answer choices a) Basic EOQ b) Production Quantity c) Optimal Production
Inventory records show the following: Series Q R S --== Unit Cost $1,751.34 $462.00 $88.44 $382.73 $96.42 $38.04 $34.23 Count 6 22 63 14 24 51 17 Calculate the usage values of the series and determine which is most likely to be classified as class A
SLO-2.1 Despite the increased use of JIT systems, there are several benefits or advantages to having inventory, they include: A) Make possible smooth and efficient operations by decoupling individual segments of the total operationB) Inventories of parts and components produced in-house facilitates economical production runs in various machine-assembly stationsC) Provides “safety” stock for supply interruptionsD) Finished goods inventory help the marketing/sales department satisfy unexpected customer demand to avoid stockoutsE) All of the above SLO-2.3 Which of the following is not a definition of Supply Chain Management (SCM)? A) SCM is an integrating philosophy to manage the total flow of a distribution channel from supplier to the ultimate customer.B) SCM encompasses integrative management of the sequential flow of logistical, conversion and service activities from vendors to ultimate consumers necessary to produce a product of service efficiently and effectively.C) SCM is a…
Justify why a reduction in setup time will result in a reduction in the average amount of inventory held by a business.
Instruction: Answer what is being required. You may compute them manually or use the Excel QM.Pencil number 2 at the campus book-store are sold at a fairly steady rate of $60 per week. It cost the bookstore $12 to initiate an order to its supplier and holding costs are $0.005 per pencil per year.Determine◦ What is the optimal number of pencils for the bookstore to purchase to minimize total annual inventory cost?◦ How many Number of orders per year?◦What is the The length of each order cycle?◦ How much is the Annual holding cost?◦ How much is the Annual ordering cost? ◦ What is the total annual inventory cost?If the order lead time is 4 months, determine the reorder point.Please Illustrate the inventory profile graphically.What additional cost would the book-store incur if it orders in batches of 1000?
6. The demand for a particular part called SKU 005 is 1,500 units a year. The cost of one SKU 005 is $40.00. It costs $50.00 to place an order for SKU 005, and the user of SKU 005 has a per year inventory carrying cost of 25% of unit cost. Assume 250 working days in the year where SKU 005 is used. (Noteshaper: Scenario #26) а. What is the combined annual holding and ordering cost of an order size of 200 units for SKU 005? b. How many of SKU 005 should be ordered, to minimize combined ordering and holding costs? c. The vendor who sells SKU 005 has just offered a 5% discount for orders of 500 or more. Now how many should be ordered? d. Once the purchasing manager for SKU 005 places an order, the vendor requires 7 working days to deliver that order. What should be the purchasing manager's reorder point?
Q2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually. Q2) Groundz Coffee Shop uses 4 kgs of a specialty tea weekly; each kg costs $16. Carrying costs are $1 per kg per week because space is very scarce. It costs the firm $8 to prepare an order. Assume 52 weeks per year. How many kgs of tea should Groundz order at a time? What is total annual cost. How many orders should Groundz place annually.

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