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Author Question: Your company has compiled the following data on the small set of products that comprise the ... (Read 47 times)

Diane

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Question 1

Montegut Manufacturing produces a product for which the annual demand is 10,000 units. Production averages 100 per day, while demand is 40 per day. Holding costs are $2.00 per unit per year; set-up costs $200.00. If they wish to produce this product in economic batches, what size batch should be used? What is the maximum inventory level? How many order cycles are there per year? How much does management of this good in inventory cost the firm each year?

Question 2

Your company has compiled the following data on the small set of products that comprise the specialty repair parts division. Perform ABC analysis on the data. Which products do you suggest the firm keep the tightest control over? Explain.

SKUAnnual DemandUnit Cost
R11250$250
S2275$90
T3320$60
U44150$150
V55100$75


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Marked as best answer by Diane on Dec 3, 2019

EAN94

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Diane

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Reply 2 on: Dec 3, 2019
YES! Correct, THANKS for helping me on my review


Mochi

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Reply 3 on: Yesterday
Great answer, keep it coming :)

 

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