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Author Question: Jerry Allison is in charge of production for a small producer of plumbing supplies. The cricket ... (Read 89 times)

tfester

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Jerry Allison is in charge of production for a small producer of plumbing supplies. The cricket model has an estimated annual demand of 12,000 units and can be produced at a production rate of 90 units per day. The company produces (and sells) the cricket 300 days per year. Setup cost to produce this model averages $22 and the item has a holding cost of $3 per unit per year. If he chooses to produce batches dictated by the economic production lot size (ELS) model, how many days elapse between the start of consecutive production runs (what is the time between runs or TBO)?

◦ Greater than 8 days but fewer than or equal to 10 days
◦ Greater than 10 days but fewer than or equal to 12 days
◦ Fewer than or equal to 8 days
◦ Greater than 12 days


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Marked as best answer by tfester on Apr 18, 2020

ApricotDream

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tfester

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Reply 2 on: Apr 18, 2020
Excellent


tandmlomax84

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Reply 3 on: Yesterday
Wow, this really help

 

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