A toy manufacturer uses 45,980 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 900 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is per wheel per year. Setup cost for a production run is. The firm operates 242 days per year. Determine the following: a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.) b. Use your final answer from part a to determine minimum total annual cost for carrying and setup. (Round your answer to a whole number.) c. Cycle time for the optimal run size (Round your answer to two decimal points.)
A toy manufacturer uses 45,980 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 900 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is per wheel per year. Setup cost for a production run is. The firm operates 242 days per year. Determine the following: a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.) b. Use your final answer from part a to determine minimum total annual cost for carrying and setup. (Round your answer to a whole number.) c. Cycle time for the optimal run size (Round your answer to two decimal points.)
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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Transcribed Image Text:A toy manufacturer uses 45,980 rubber wheels per year for its popular dump truck series. The firm makes
its own wheels, which it can produce at a rate of 900 per day. The toy trucks are assembled uniformly
over the entire year. Carrying cost is per wheel per year. Setup cost for a production run is. The firm
operates 242 days per year. Determine the following: a. Optimal run size (Round your answer to a whole
number, following normal rules of rounding.) b. Use your final answer from part a to determine
minimum total annual cost for carrying and setup. (Round your answer to a whole number.) c. Cycle time
for the optimal run size (Round your answer to two decimal points.)
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