Malburn Construction Ltd. Manufactures and distributes window frames. The company uses 600,000 metal strips in producing the frames for the year. Each strip cost $15, the storage cost is 10% of the cost price and $180 is required to make an order. Suppose Malburn Construction has acquired the necessary capital investments such that the metal strip could be produce at its own factory at a rate of 800,000 metal strips per annum. Calculate: (i). the economic batch order quantity (ii). the number of runs per year. (iii). the length of the cycle in days (iv). the run time in days (v). the effective replenishment per year (vi). the peak inventory level (vii). the annual storage cost (viii).the annual ordering cost
Malburn Construction Ltd. Manufactures and distributes window frames. The company uses 600,000 metal strips in producing the frames for the year. Each strip cost $15, the storage cost is 10% of the cost price and $180 is required to make an order. Suppose Malburn Construction has acquired the necessary capital investments such that the metal strip could be produce at its own factory at a rate of 800,000 metal strips per annum. Calculate: (i). the economic batch order quantity (ii). the number of runs per year. (iii). the length of the cycle in days (iv). the run time in days (v). the effective replenishment per year (vi). the peak inventory level (vii). the annual storage cost (viii).the annual ordering cost
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
Malburn Construction Ltd. Manufactures and distributes window frames. The company uses 600,000
metal strips in producing the frames for the year. Each strip cost $15, the storage cost is 10% of the cost
price and $180 is required to make an order.
Suppose Malburn Construction has acquired the necessary capital investments such that the metal strip
could be produce at its own factory at a rate of 800,000 metal strips per annum. Calculate:
(i). the economic batch order quantity
(ii). the number of runs per year.
(iii). the length of the cycle in days
(iv). the run time in days
(v). the effective replenishment per year
(vi). the peak inventory level
(vii). the annual storage cost
(viii).the annual ordering cost
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