Homework Help is Here – Start Your Trial Now!
Business
Operations Management
Assume that a production line operates such that the production lot size model is applicable. Assume that D = 4,900 units per year, C = $100, and C₁ = $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 (b) Compute the EOQ recommended lot size using equation Q* = Q* = 2DCo 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.) As production rate P increases, production lot size Q* increases. O EOQ Q* is greater than production lot size Q*. O Production lot size Q* and EOQ Q* are equal. O Increasing production rate P does not affect production lot size Q*. O Production lot size Q* is greater than EOQ Q*. As production rate P increases, production lot size Q* decreases.

Assume that a production line operates such that the production lot size model is applicable. Assume that D = 4,900 units per year, C = $100, and C₁ = $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 (b) Compute the EOQ recommended lot size using equation Q* = Q* = 2DCo 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.) As production rate P increases, production lot size Q* increases. O EOQ Q* is greater than production lot size Q*. O Production lot size Q* and EOQ Q* are equal. O Increasing production rate P does not affect production lot size Q*. O Production lot size Q* is greater than EOQ Q*. As production rate P increases, production lot size Q* decreases.

Practical Management Science
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...
See similar textbooks
icon
Related questions
Question
Assume that a production line operates such that the production lot size model is applicable. Assume that D = 4,900 units per year, Co = $100, and C₁ = $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* = 2DC Ch 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.) As production rate P increases, production lot size Q* increases. O EOQ Q* is greater than production lot size Q*. O Production lot size Q* and EOQ Q* are equal. O Increasing production rate P does not affect production lot size Q*. Production lot size Q* is greater than EOQ Q*. As production rate P increases, production lot size Q* decreases.
Transcribed Image Text:Assume that a production line operates such that the production lot size model is applicable. Assume that D = 4,900 units per year, Co = $100, and C₁ = $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* = 2DC Ch 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.) As production rate P increases, production lot size Q* increases. O EOQ Q* is greater than production lot size Q*. O Production lot size Q* and EOQ Q* are equal. O Increasing production rate P does not affect production lot size Q*. Production lot size Q* is greater than EOQ Q*. As production rate P increases, production lot size Q* decreases.
Expert Solution
steps

Step by step

Solved in 3 steps with 2 images

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Practical Management Science
Practical Management Science
Operations Management
ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,
Operations Management
Operations Management
Operations Management
ISBN:
9781259667473
Author:
William J Stevenson
Publisher:
McGraw-Hill Education
Operations and Supply Chain Management (Mcgraw-hi…
Operations and Supply Chain Management (Mcgraw-hi…
Operations Management
ISBN:
9781259666100
Author:
F. Robert Jacobs, Richard B Chase
Publisher:
McGraw-Hill Education
Business in Action
Business in Action
Operations Management
ISBN:
9780135198100
Author:
BOVEE
Publisher:
PEARSON CO
Purchasing and Supply Chain Management
Purchasing and Supply Chain Management
Operations Management
ISBN:
9781285869681
Author:
Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:
Cengage Learning
Production and Operations Analysis, Seventh Editi…
Production and Operations Analysis, Seventh Editi…
Operations Management
ISBN:
9781478623069
Author:
Steven Nahmias, Tava Lennon Olsen
Publisher:
Waveland Press, Inc.
SEE MORE TEXTBOOKS