Author Question: A product has annual demand of 100,000 units. The plant manager wants production to follow a ... (Read 84 times)

abarnes · **on:** Dec 3, 2019

Question 1

A firm wants to develop a level material use schedule based on the following data. What should be the setup cost?

Desired lot size:	60
Annual demand:	40,000
Holding cost:	$20 per unit per year
Daily production rate:	320
Work days per year:	250

◦ $500
◦ $450
◦ $4.50
◦ $45
◦ $0.45

Question 2

A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle? d = 400 per day (250 days per year), p = 4000 units per day, H = $40 per unit per year, and Q = 200 (demand for four hours, half a day).
◦ $2.00
◦ $1,036.80
◦ $64.00
◦ $18.00
◦ $7.20

SVictor · **Reply #1 on:** Dec 3, 2019

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