a.Compute the minimum cost production lot size for each of the following production rates. (Round your answers to the nearest integer.) (i) 8,000 units per year Q*= (ii) 10,000 units per year Q*= (iii) 32,000 units per year Q*= (iv) 100,000 units per year Q*= b.Compute the EOQ recommended lot size using equation Q* = 2DCo Ch Q*= Comparing the EOQ lot size to the various production lot sizes in part (a), what observations can you make about the relationship between the EOQ model and the production lot size model? (Select all that apply.) ?Production lot size Q* and EOQ Q* are equal. ?As production rate P increases, production lot size Q* increases. ?As production rate P increases, production lot size Q* decreases. ?Production lot size Q* is greater than EOQ Q*. ?EOQ Q* is greater than production lot size Q*. ?Increasing production rate P does not affect production lot size Q*.
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.
Assume that a production line operates such that the production lot size model is applicable. Assume that
D = 1,600
units per year,
Co = $100,
and
Ch = $2
per unit per year.
a.Compute the minimum cost production lot size for each of the following production rates. (Round your answers to the nearest integer.)
(i)
8,000 units per year
Q*=
(ii)
10,000 units per year
Q*=
(iii)
32,000 units per year
Q*=
(iv)
100,000 units per year
Q*=
b.Compute the EOQ recommended lot size using equation
Q* =
|
|
|
Q*=
Comparing the EOQ lot size to the various production lot sizes in part (a), what observations can you make about the relationship between the EOQ model and the production lot size model? (Select all that apply.)
?Production lot size Q* and EOQ Q* are equal.
?As production rate P increases, production lot size Q* increases.
?As production rate P increases, production lot size Q* decreases.
?Production lot size Q* is greater than EOQ Q*.
?EOQ Q* is greater than production lot size Q*.
?Increasing production rate P does not affect production lot size Q*.
I assume parts (i, ii, iii, iiii) are solvable with the same equation but I am not sure if I am supposed to do it via excel or can do it by hand. I would prefer a hand system however I did not locate any implications to use excel is why I ask.
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