a. Minimum cost production lot size. Round your answer to the nearest whole number. Do not round intermediate values. Q* = X b. Number of production runs per year. Round your answer to two decimal places. Do not round intermediate values. Number of production runs per year = T = c. Cycle time. Round your answer to two decimal places. Do not round intermediate values. X days d. Length of a production run. Round your answer to two decimal places. Do not round intermediate values. Production run length = X X days Maximum inventory = e. Maximum inventory. Round your answer to the nearest whole number. Do not round intermediate values. X
a. Minimum cost production lot size. Round your answer to the nearest whole number. Do not round intermediate values. Q* = X b. Number of production runs per year. Round your answer to two decimal places. Do not round intermediate values. Number of production runs per year = T = c. Cycle time. Round your answer to two decimal places. Do not round intermediate values. X days d. Length of a production run. Round your answer to two decimal places. Do not round intermediate values. Production run length = X X days Maximum inventory = e. Maximum inventory. Round your answer to the nearest whole number. Do not round intermediate values. X
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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Question
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,000 copies. The cost of one copy of the book is $12. The holding cost is based on an 15% annual rate, and production setup costs are $130 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 13 days. Use the production lot size model to compute the following values:
![**Wilson Publishing Company: Production and Inventory Management**
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,000 copies. The cost of one copy of the book is $12. The holding cost is based on a 15% annual rate, and production setup costs are $130 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 13 days.
Use the production lot size model to compute the following values:
a. **Minimum cost production lot size.** Round your answer to the nearest whole number. Do not round intermediate values.
\( Q^* = \) [Input your answer]
b. **Number of production runs per year.** Round your answer to two decimal places. Do not round intermediate values.
Number of production runs per year = [Input your answer]
c. **Cycle time.** Round your answer to two decimal places. Do not round intermediate values.
\( T = \) [Input your answer] days
d. **Length of a production run.** Round your answer to two decimal places. Do not round intermediate values.
Production run length = [Input your answer] days
e. **Maximum inventory.** Round your answer to the nearest whole number. Do not round intermediate values.
Maximum inventory = [Input your answer]
f. **Total annual cost.** Round your answer to the nearest dollar. Do not round intermediate values.
Total annual cost = $[Input your answer]
g. **Reorder point.** Round your answer to the nearest whole number. Do not round intermediate values.
\( r = \) [Input your answer]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F399a0712-cc92-47dc-ac76-17e7cfe211f4%2F58df956a-ce90-4c0a-bc0c-fba7ba66172d%2Fzy3nw55_processed.png&w=3840&q=75)
Transcribed Image Text:**Wilson Publishing Company: Production and Inventory Management**
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7,000 copies. The cost of one copy of the book is $12. The holding cost is based on a 15% annual rate, and production setup costs are $130 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 13 days.
Use the production lot size model to compute the following values:
a. **Minimum cost production lot size.** Round your answer to the nearest whole number. Do not round intermediate values.
\( Q^* = \) [Input your answer]
b. **Number of production runs per year.** Round your answer to two decimal places. Do not round intermediate values.
Number of production runs per year = [Input your answer]
c. **Cycle time.** Round your answer to two decimal places. Do not round intermediate values.
\( T = \) [Input your answer] days
d. **Length of a production run.** Round your answer to two decimal places. Do not round intermediate values.
Production run length = [Input your answer] days
e. **Maximum inventory.** Round your answer to the nearest whole number. Do not round intermediate values.
Maximum inventory = [Input your answer]
f. **Total annual cost.** Round your answer to the nearest dollar. Do not round intermediate values.
Total annual cost = $[Input your answer]
g. **Reorder point.** Round your answer to the nearest whole number. Do not round intermediate values.
\( r = \) [Input your answer]
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Step 1: Determine given variables
VIEWStep 2: Determine Intermediate Calculations:
VIEWStep 3: Determine production lot size
VIEWStep 4: Determine number of runs
VIEWStep 5: Determine cycle time
VIEWStep 6: Determine length of production run
VIEWStep 7: Determine maximum inventory
VIEWStep 8: Determine total cost
VIEWStep 9: Determine reorder point
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