2DS Qp (13–5) %3D Н н (р

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...
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Economic production quantity. This type of problem can be recognized when a production rate (p) Problem 2
is given in addition to the basic EOQ information. Use Formula 13–5 to compute the optimal run
quantity. Production (run) time is Q/p. Imax is (Q/p)(p – u). The time between the end of one run and
the start of the next is (Imax)/u – setup time.
The Dine Corporation is both a producer and a user of brass couplings. The firm operates 220
days a year and uses the couplings at a steady rate of 50 per day. Couplings can be produced at a rate
of 200 per day. Annual storage cost is $2 per coupling, and machine setup cost is $70 per run.
a. Determine the economic run quantity.
b. Approximately how many runs per year will there be?
c. Compute the maximum inventory level.
d. What is the average inventory on hand?
e. Determine the length of the pure consumption portion of the cycle

2DS
Qp
(13–5)
%3D
Н
н (р
Transcribed Image Text:2DS Qp (13–5) %3D Н н (р
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