6-27 Ross White's machine shop uses 2,500 brackets dur- your re ing the course of a year, and this usage is relatively constant throughout the year. These brackets are pu chased from a supplier 100 miles away for $15 eacn, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost), and the ordering cost per order is $18.75. There are 250 working days per year. : 6-30 After anal taining b through 6 lubo ristke bde 10 1o Sri bb that the le averages often var (a) What is the EOQ? (b) Given the EOQ, what is the average inventory? What is the annual inventory holding cost? (c) In minimizing cost, how many orders would be placed each year? What would be the annual has dete distribut (a) Wha serv 08 e 06 (b) Wh ordering cost? (d) Given the EOQ, what is the total annual inven- tory cost (including purchase cost)? (e) What is the time between orders?) (f) What is the ROP? war (c) Wh (d) Wh 2l wor sto 6-31 Annua 80,000 : 6-28 Ross White (see Problem 6-27) wants to reconsider his decision of buying the brackets and is consider- ing making the brackets in-house. He has determined that setup cost would be $25 in machinist time and lost production time and that 50 brackets could be produced in a day once the machine has been set up. Ross estimates that the cost (including labor time and materials) of producing one bracket would be $14.80. The holding cost would be 10% of this cost. rific T in Ne 10i 0128 per o is 25 for t his w ST Bth 2.36 9 o estin 9o di diozes (a) What is the daily demand rate? (b) What is the optimal production quantity? (a) por (c) How long will it take to produce the optimal quantity? How much inventory is sold during ilggu ohforord 3s 196 Col (b) et B la this time? 000 A sd (d) If Ross uses the optimal production quantity, what would be the maximum inventory level? What would be the average inventory level? What is the annual holding cost? (e) How many production runs would there be each year? What would be the annual setup cost? (f) Given the optimal production run size, what is the total annual inventory cost? (g) If the lead time is one-half day, what is the ROP? Cbsbaln sd b tpd iz kol mptaust ssic :6-32 M de bol mi fa 30 201 bo th $6.th T $ :E&
Critical Path Method
The critical path is the longest succession of tasks that has to be successfully completed to conclude a project entirely. The tasks involved in the sequence are called critical activities, as any task getting delayed will result in the whole project getting delayed. To determine the time duration of a project, the critical path has to be identified. The critical path method or CPM is used by project managers to evaluate the least amount of time required to finish each task with the least amount of delay.
Cost Analysis
The entire idea of cost of production or definition of production cost is applied corresponding or we can say that it is related to investment or money cost. Money cost or investment refers to any money expenditure which the firm or supplier or producer undertakes in purchasing or hiring factor of production or factor services.
Inventory Management
Inventory management is the process or system of handling all the goods that an organization owns. In simpler terms, inventory management deals with how a company orders, stores, and uses its goods.
Project Management
Project Management is all about management and optimum utilization of the resources in the best possible manner to develop the software as per the requirement of the client. Here the Project refers to the development of software to meet the end objective of the client by providing the required product or service within a specified Period of time and ensuring high quality. This can be done by managing all the available resources. In short, it can be defined as an application of knowledge, skills, tools, and techniques to meet the objective of the Project. It is the duty of a Project Manager to achieve the objective of the Project as per the specifications given by the client.
Ross White wants to reconsider his decision of buying the brackets and is considering making the brackets in-house. He has determined that setup cost would be $25 in machinist time and lost production time and that 50 brackets could be produced in a day once the machine has been set up. Ross estimates that the cost (inlcuding labor time and materials) of producing one bracket woldbe $14.80. The holding cost would be 10% of this cost.
a) What is the daily demand rate?
b) What is the optimal production quantity?
c) How long will it take to produce the optimal quanitty? How much inventory is sold during the time?
d) if Ross uses the opitmal produciton quantity, what would be the maximum inventory level? What is the annual holding cost?
e) How many production runs would there be each year? What would be the annual setup cost?
f) Given the optimal production run size, what is the total annual inventory cost?
g) if the lead time is one-half day, what is the ROP?
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