**Radovilsky Manufacturing Company Flashing Lights Production Analysis**Radovilsky Manufacturing Company, located in Hayward, California, produces flashing lights for toys. The company runs its production facility 300 days annually. They have demand for approximately 12,300 flashing lights per year and possess the capacity to manufacture 100 lights per day. The light production setup incurs a cost of $48. Each light is priced at $1.05, while the holding cost is $0.15 per light annually.**Questions:**a) What is the optimal size of the production run? - Answer: 3653 units (rounded to the nearest whole number).b) What is the average holding cost per year? - Answer: $___ (Rounded to two decimal places). (Please complete the calculation based on the provided data and standard formulas for inventory management.)This analysis helps in determining efficient inventory and cost management strategies using production optimization techniques.

Production is the process in which inputs are combined to have the required output. It includes a…

Answered: a) What is the optimal size of the…

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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Example in real life Production or Service Company applying any Inventory Management.
10.5 An SKU has an annual demand of 10,000 units, each costing $20, ordering costs are $80 per order, and the cost of carrying inventory is 25%. Calculate the EOQ in units and then convert to dollars.
If D = 7,800 per month, S = $46 per order, and H= $2.50 per unit per month, a) What is the economic order quantity? The EOQ is units (round your response to the nearest whole number).
The Meeras Cafeteria at the College of Economics and Political Science serves cooked food including shawarma and hamburgers, as well different types of drinks and packaged food products 1/ What type of inventory system would you suggest for the Meeras Cafeteria - Continuouis Review or Periodic Review? What is the reason for your answer. 2) To implement the system you suggest, what data will you need, and how do you obtain this data. 3) Once you have identified the needed data, explain how you can implement the inventory management system. Indicate a recommended service level, how you will decide the order quantities and how inventory will be monitored.
Which among the following methods assigns costs on the assumption that the inventory quantities on hand represent those last purchased or produced? Select one alternative: First-in, first-out Weighted-average cost Specific identification Last-in, first-out
If D = 8,500 per month, S = $46 per order, and H = $2.00per unit per month, a) What is the economic order quantity? The EOQ is enter your response here units (round your response to the nearest whole number).
A manufacturer capacity is equal to 60 products per work day. The annual demand reaches 11,520 units per year. The manufacturer operates 6 days per week and 48 weeks per year. The cost to switch the production line from one type of product to the other is $50,000. It costs $1,000 to store on product for one year. a. What is the economic lot size? b. What is the total annual cost? Production Course.
Item X is a standard item stocked in a company's inventory of spare parts. Each year, the firm uses about 2,000 units of Item X, which costs Php 1,000 per unit. Storage costs, which include insurance and cost of capital, amount to 18 percent of item unit cost. Placing an order for more of Item X costs Php 400. The company operates 360 days per year and Item X is received 9 days after placement of order.
The daily demand for printer paper at the School of Business is approximately normal with a mean of 15.2 boxes and a standard deviation of 1.6 per day. The Administrative Assistant reviews the inventory every 30 days, and the lead time is 5 days. The division set a policy of satisfying 96% of the demand for paper. If there are 125 boxes of printer paper in inventory at the beginning of this review period, how many boxes of printer paper should be ordered? What is the variance of demand during the review period plus the lead-time period? What is the standard deviation of demand during the review period plus the lead-time period? A. Variance = 76.80 Standard deviation = 8.76 B. Variance = 89.60 Standard deviation = 9.47 C. Variance = 9.47 Standard deviation = 89.60 D. Variance = 12.8 Standard deviation = 3.58

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a) What is the optimal size of the production run? b) What is the average holding cost per year? $ 3653 units (round your response to the nearest whole number). (round your response to two decimal places)