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Author Question: A toy manufacturer makes its own wind-up motors, which are then put into its toys. While the toy ... (Read 78 times)

gbarreiro

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Question 1

Given the following data: D = 65,000 units per year, S = $120 per setup, P = $5 per unit, and I = 25% per year, calculate the EOQ and calculate annual costs following EOQ behaviour.

Question 2

A toy manufacturer makes its own wind-up motors, which are then put into its toys. While the toy manufacturing process is continuous, the motors are intermittent flow. Data on the manufacture of the motors appears below.

Annual demand (D) = 50,000 unitsDaily subassembly production rate = 1,000
Setup cost (S) = $85 per batchDaily subassembly usage rate = 200
Carrying cost = $.20 per unit per year

a. To minimize cost, how large should each batch of subassemblies be?
b. Approximately how many days are required to produce a batch?
c. How long is a complete cycle?
d. What is the average inventory for this problem?
e. What is the total inventory cost (rounded to nearest dollar) of the optimal behaviour in this problem?


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Marked as best answer by gbarreiro on Dec 3, 2019

dreamfighter72

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gbarreiro

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Reply 2 on: Dec 3, 2019
:D TYSM


samiel-sayed

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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