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 12,500 flashing lights per yearand has the capability of producing 105 per day. Setting up the light production costs $52. The cost of each light is $1.00. The holding cost is $0.10 per light per year.a) What is the optimal size of the production run?Optimal Size of the Production run = Qp =b) What is the average holding cost per year?2DS√ + [₁-9]units (round your response to the nearest whole number).Average Holding Cost per Year = Average Inventory x Holding Cost per Unit =decimal places).c) What is the average setup cost per year?Qp27² × [1₁-11]Average Setup Cost = Number of Orders Placed per Year x Setup Cost per Order =d) What is the total cost per year, including the cost of the lights?Total Cost = Annual Holding Cost + Annual Setup Cost + Product Cost = $-S=x Holding Cost per Unit = $(round your response to two(round your response to two decimal places).(round your response to two decimal places).

Operating days in a year = 300 daysAnnual demand (D) = 12,500 unitsDaily demand (d) = 12500/300 =…

Answered: Radovilsky Manufacturing Company, in…

Practical Management Science

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ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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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 $51. The cost of each light is $0.95. The holding cost is $0.05 per light per year.

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