2. An electronic component manufacturer produces supercapacitors. They are sold at a steady rate of 60 per week. The capacitors cost the manufacturer $200 each. It costs the distributor $1200 to initiate an order, and holding costs are based on an annual interest rate of 30 %. a. Determine: i. the optimal number of capacitors for the distributor to purchase, ii. the time between placement of orders, iii. the yearly holding cost for this item, iv. the yearly setup cost for this item and v. the yearly purchase cost for this item. b. Due to the pandemic, the lead time for order delivery has increased. What standing order size should the distributor set, if the lead time is: i. 2 months, i. 18 months? c. If production rate is 4000 supercapacitors per year, determine: i. the optimal size of a production run, ii. the length of each production run, iii. the average annual holding cost, iv. the average annual setup cost and v. the maximum level of the on-hand inventory.
2. An electronic component manufacturer produces supercapacitors. They are sold at a steady rate of 60 per week. The capacitors cost the manufacturer $200 each. It costs the distributor $1200 to initiate an order, and holding costs are based on an annual interest rate of 30 %. a. Determine: i. the optimal number of capacitors for the distributor to purchase, ii. the time between placement of orders, iii. the yearly holding cost for this item, iv. the yearly setup cost for this item and v. the yearly purchase cost for this item. b. Due to the pandemic, the lead time for order delivery has increased. What standing order size should the distributor set, if the lead time is: i. 2 months, i. 18 months? c. If production rate is 4000 supercapacitors per year, determine: i. the optimal size of a production run, ii. the length of each production run, iii. the average annual holding cost, iv. the average annual setup cost and v. the maximum level of the on-hand inventory.
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...
Related questions
Question
Please solve complete
![2. An electronic component manufacturer produces supercapacitors. They are sold at a steady rate
of 60 per week. The capacitors cost the manufacturer $200 each. It costs the distributor $1200
to initiate an order, and holding costs are based on an annual interest rate of 30 %.
a.
Determine:
i.
the optimal number of capacitors for the distributor to purchase,
ii.
the time between placement of orders,
iii.
the yearly holding cost for this item,
iv.
the yearly setup cost for this item and
v.
the yearly purchase cost for this item.
b. Due to the pandemic, the lead time for order delivery has increased. What standing order size
should the distributor set, if the lead time is:
i.
2 months,
i.
18 months?
c. If production rate is 4000 supercapacitors per year, determine:
i.
the optimal size of a production run,
ii.
the length of each production run,
iii.
the average annual holding cost,
iv.
the average annual setup cost and
V.
the maximum level of the on-hand inventory.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F52a83b91-0b62-4e56-88fd-e5474e4375c5%2F1ef84928-b81b-4e5c-8a21-5386052820b8%2Flbkctll_processed.jpeg&w=3840&q=75)
Transcribed Image Text:2. An electronic component manufacturer produces supercapacitors. They are sold at a steady rate
of 60 per week. The capacitors cost the manufacturer $200 each. It costs the distributor $1200
to initiate an order, and holding costs are based on an annual interest rate of 30 %.
a.
Determine:
i.
the optimal number of capacitors for the distributor to purchase,
ii.
the time between placement of orders,
iii.
the yearly holding cost for this item,
iv.
the yearly setup cost for this item and
v.
the yearly purchase cost for this item.
b. Due to the pandemic, the lead time for order delivery has increased. What standing order size
should the distributor set, if the lead time is:
i.
2 months,
i.
18 months?
c. If production rate is 4000 supercapacitors per year, determine:
i.
the optimal size of a production run,
ii.
the length of each production run,
iii.
the average annual holding cost,
iv.
the average annual setup cost and
V.
the maximum level of the on-hand inventory.
Expert Solution
![](/static/compass_v2/shared-icons/check-mark.png)
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
![Blurred answer](/static/compass_v2/solution-images/blurred-answer.jpg)
Recommended textbooks for you
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
![Practical Management Science](https://www.bartleby.com/isbn_cover_images/9781337406659/9781337406659_smallCoverImage.gif)
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
![Operations Management](https://www.bartleby.com/isbn_cover_images/9781259667473/9781259667473_smallCoverImage.gif)
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
![Operations and Supply Chain Management (Mcgraw-hi…](https://www.bartleby.com/isbn_cover_images/9781259666100/9781259666100_smallCoverImage.gif)
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](https://www.bartleby.com/isbn_cover_images/9780135198100/9780135198100_smallCoverImage.gif)
![Purchasing and Supply Chain Management](https://www.bartleby.com/isbn_cover_images/9781285869681/9781285869681_smallCoverImage.gif)
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…](https://www.bartleby.com/isbn_cover_images/9781478623069/9781478623069_smallCoverImage.gif)
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.