3. Tamjid manufactures scented candles and sells these candles in his own retail store. His annualsales volume is 4,800 boxes of candles and he operates 240 days per year. He can manufacturethese candles at a rate of 48 boxes per day. Assume that demand is uniform. Setup cost is Tk. 32for a run, and holding cost is 400 paisa per box.a) Figure out the optimum production size.b) Minimum total annual cost for carrying and set up. ed for quotaticc) What is the run time?d) What is the cycle time?e) How much the company can save annually if the setup cost could be reduced to Tk25 per run?

Given: Annual demand D =4800 boxes of candle Operating days = 240 days /year Production rate p= 48…

Answered: 3. Tamjid manufactures scented candles…

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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Discuss how inventory expenses must be balanced and kept to q minimum through inventory control
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1000. Nestle Ltd. It produces its premium plant food in 40 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 52 weeks each year. Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 0.550 per bag. What will the optimal maximum inventory level on hand end of each production run? Round - up to the nearest integer ?

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