Homework Help is Here – Start Your Trial Now!
Business
Operations Management
2. A toy manufacturer uses 48,000 rubber wheels per year for its dump truck. The trucks are assembled over the entire year. The firm makes its own wheels at a rate of P800 per day and makes them in batches/lots. The holding cost is P1 per wheel per year. Setup cost is P45 per order. The firm operates 240 days per year. a. How many wheels should they make at a time? b. How much is the demand rate per day? c. How much is the POQ? d. How much is the total inventory cost? e. What is the length of the production run?

2. A toy manufacturer uses 48,000 rubber wheels per year for its dump truck. The trucks are assembled over the entire year. The firm makes its own wheels at a rate of P800 per day and makes them in batches/lots. The holding cost is P1 per wheel per year. Setup cost is P45 per order. The firm operates 240 days per year. a. How many wheels should they make at a time? b. How much is the demand rate per day? c. How much is the POQ? d. How much is the total inventory cost? e. What is the length of the production run?

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question

Philippine accounting

2. A toy manufacturer uses 48,000 rubber wheels per year for its dump truck. The trucks are assembled over the entire year. The firm makes its own wheels at a rate of P800 per day and makes them in batches/lots. The holding cost is P1 per wheel per year. Setup cost is P45 per order. The firm operates 240 days per year. a. How many wheels should they make at a time? b. How much is the demand rate per day? c. How much is the POQ? d. How much is the total inventory cost? e. What is the length of the production run?
Transcribed Image Text:2. A toy manufacturer uses 48,000 rubber wheels per year for its dump truck. The trucks are assembled over the entire year. The firm makes its own wheels at a rate of P800 per day and makes them in batches/lots. The holding cost is P1 per wheel per year. Setup cost is P45 per order. The firm operates 240 days per year. a. How many wheels should they make at a time? b. How much is the demand rate per day? c. How much is the POQ? d. How much is the total inventory cost? e. What is the length of the production run?
Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 4 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS