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 flashin and 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 = Q₂ = b) What is the average holding cost per year? 2DS √ H[₁-8] 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? -2x [1] D Average Setup Cost = Number of Orders Placed per Year x Setup Cost per Order= Qp d) What is the total cost per year, including the cost of the lights? Total Cost = Annual Holding Cost + Annual Setup Cost+ Product Cost = $ x Holding Cost per Unit = $ -S=$ (round your response to two (round your response to two decimal places). (round your response to two decimal places).
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 flashin and 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 = Q₂ = b) What is the average holding cost per year? 2DS √ H[₁-8] 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? -2x [1] D Average Setup Cost = Number of Orders Placed per Year x Setup Cost per Order= Qp d) What is the total cost per year, including the cost of the lights? Total Cost = Annual Holding Cost + Annual Setup Cost+ Product Cost = $ x Holding Cost per Unit = $ -S=$ (round your response to two (round your response to two decimal places). (round your response to two decimal places).
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
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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 12,500 flashing lights per year
and 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?
Qp
27² × [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).](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F07b558f4-9dbc-4635-acc8-3c3322ccd686%2F78f43a20-5136-45fe-a628-8fff281a39d0%2F002ovyh_processed.png&w=3840&q=75)
Transcribed Image Text: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 year
and 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?
Qp
27² × [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).
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