The answer is not 1381 **Radovilsky Manufacturing Company Analysis**Radovilsky Manufacturing Company in Hayward, California, produces flashing lights for toys. The company operates its production facility 300 days per year. It has orders for approximately 12,300 flashing lights annually and can produce 100 lights per day. Setting up the light production costs $48. The cost of each light is $1.05, and the holding cost is $0.15 per light per year.**Problem Statement:**a) What is the optimal size of the production run?*Calculate and round your response to the nearest whole number.***Note:** There are no graphs or diagrams in this image.

Number of production days = 300 days per year Annual Demand = D = 12300 flashing lights Daily production capacity = p = 100 per day Set- up cost = S = $48 Cost of each light = C = $1.05 Holding cost = h = $0.15 per light per year We first calculate the daily demand Daily demand = d = Annual DemandNumber of production days = 12300300 = 41 units Optimal production run size (EPQ = Economic Production Quantity) minimizes the total production costs which include annual set-up cost and annual holding cost. EPQ is calculated using the formula below: EPQ = 2 x D x Sh * (1 - dp) where the symbols used are as per step 1 and d is for the daily demand we calculated above. Substituting the values from Step 1, we get EPQ = 2 x 12300 x 480.15 x (1 - 41100) = 11808000.15 x 0.59 = 3,652.72 Rounding off to the nearest whole number, we get EPQ = 3653 unitsOptimal production run size = 3653 units

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Radovilsky Manufacturing Company in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 100 per day Setting up the light production costs $48. The cost of each light is $1.05 The holding cost is $0 15 per light per year a) What is the optimal size of the production run? units (round your response to the nearest whole number).

Radovilsky Manufacturing Company in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for about 12,300 flashing lights per year and has the capability of producing 100 per day Setting up the light production costs $48. The cost of each light is $1.05 The holding cost is $0 15 per light per year a) What is the optimal size of the production run? units (round 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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