Emarpy Appliance is a company that produces all kirids of major appliances. Bud Banis, the president of Emarpy, is concerned about the production policy for the company's best-selling refrigerate The annual demand for this has been about 8,750 units each year, and this demand has been constant throughout the year. The production capacity is 215 units per day. Each time production stan it costs the company $110 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $47 per year. The current production plan calls for 43 refrigerators to be produced in each production run. Assume there are 250 working days per year. a) What is the daily demand of this product? 35 units (enter your response as a whole number) b) If the company were to continue to produce 430 units each time production starts, how many days would production continue? 2 days (enter your response as a whole number) c) Under the current policy, how many production runs per year would be required? 20 runs (round your response to the nearest whole number) What would the annual setup cost be? $ 2200 (round your response to the nearest whole number) d) If the current policy continues, how many refrigerators would be in inventory when production stops? 360 units (round your response to the nearest whole number) What would the average inventory level be? 180 units (round your response to the nearest whole number), e) If the company produces 430 refrigerators at a time, what would the total annual setup cost and holding cost be? $ 10660 (round your response to the nearest whole number) If Bud Blanis wants to minimize the total annual inventory cost, how many refrigerators should be produced in each production run? 221 units (round your response to the nearest whole number How much would this save the company in inventory costs compared to the current policy of producing 430 units in each production run? pound your response to the nearest whole number)
Emarpy Appliance is a company that produces all kirids of major appliances. Bud Banis, the president of Emarpy, is concerned about the production policy for the company's best-selling refrigerate The annual demand for this has been about 8,750 units each year, and this demand has been constant throughout the year. The production capacity is 215 units per day. Each time production stan it costs the company $110 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $47 per year. The current production plan calls for 43 refrigerators to be produced in each production run. Assume there are 250 working days per year. a) What is the daily demand of this product? 35 units (enter your response as a whole number) b) If the company were to continue to produce 430 units each time production starts, how many days would production continue? 2 days (enter your response as a whole number) c) Under the current policy, how many production runs per year would be required? 20 runs (round your response to the nearest whole number) What would the annual setup cost be? $ 2200 (round your response to the nearest whole number) d) If the current policy continues, how many refrigerators would be in inventory when production stops? 360 units (round your response to the nearest whole number) What would the average inventory level be? 180 units (round your response to the nearest whole number), e) If the company produces 430 refrigerators at a time, what would the total annual setup cost and holding cost be? $ 10660 (round your response to the nearest whole number) If Bud Blanis wants to minimize the total annual inventory cost, how many refrigerators should be produced in each production run? 221 units (round your response to the nearest whole number How much would this save the company in inventory costs compared to the current policy of producing 430 units in each production run? pound your response to the nearest whole number)
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:Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the president of Emarpy, is concemed about the production policy for the company's best-selling refrigerator
The annual demand for this has been about 8,750 units each year, and this demand has been constant throughout the year. The production capacity is 215 units per day. Each time production starte
it costs the company $110 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $47 per year. The current production plan calls for 430-
refrigerators to be produced in each production run. Assume there are 250 working days per year.
a) What is the daily demand of this product? 35 units (enter your response as a whole number).
b) If the company were to continue to produce 430 units each time production starts, how many days would production continue? 2 days (enter your response as a whole number)
c) Under the current policy, how many production runs per year would be required? 20 runs (round your response to the nearest whole number).
What would the annual setup cost be? $ 2200 (round your response to the nearest whole number).
d) If the current policy continues, how many refrigerators would be in inventory when production stops? 360 units (round your response to the nearest whole number)
What would the average inventory level be? 180 units (round your response to the nearest whole number),
e) If the company produces 430 refrigerators at a time, what would the total annual setup cost and holding cost be? $ 10660 (round your response to the nearest whole number)
if Bud Banis wants to minimize the total annual inventory cost, how many refrigerators should be produced in each production run? 221 units (round your response to the nearest whole number
How much would this save the company in inventory costs compared to the current policy of producing 430 units in each production run? 1 pound your response to the nearest whole number)
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