fRadovilsky 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 flashinglights per year and has the capability of producing 95 per day. Setting up the light production costs $51. The cost of each light is $1.00. The holding cost is $0.05 per light per year.a) What is the optimal size of the production run? 6,644 units (round your response to the nearest whole number).b) What is the average holding cost per year? $ 166.10 (round your response to two decimal places).nis31Calculator-8FIN@2WS*F2Ask my instructorXHcommand#3ED80F3F3$4CRDOO000F4LLFor de5VQuestion ViewerFSTGA6BMacBook ProF6YH&7N44F7UJ8MDIIFB-K(9DDF9O<)0Lcommand4F10P>t....-optionClear all4F11{[2.1?+=11I▾4)F12[}]Final checkdelete11returnshiftH

Optimal production quantity is calculated with following formula: Optimal production quantity =…

Answered: Radovilsky Manufacturing Company, in…

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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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? 3653 units (round your response to the nearest whole number). b) What is the average holding cost per year? $ 161.65 (round your response to two decimal places) c) What is the average setup cost per year? $ 161.62 (round your response to two decimal places). d) What is the total cost per year, including the cost of the lights? $ (round your response to two decimal places).
The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery,which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies perday. The bakery sets up the pie production operation and produces until a predetermined number(Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facilitiesfor producing other bakery items. The setup cost for a production run of fruit pies is $500.The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozenfruit pies, which is constant over time, is 5,000 pies. Determine The optimal number of production runs per year
The two-bin approach is used to control inventory for a particular low-cost component. Each bin holds 1000 units. The annual usage of the component is 40,000 units. Cost to order the component is around $50. (a) What is the imputed holding cost per unit for this data? (b) If the actual annual holding cost per unit is only 5 cents, what lot size should be ordered? (c) How much more is the current two-bin approach costing the company annually, compared to the economic order quantity?
A plastic canister manufacturing company maintains an annual safety stock of 500 units of plastic caps. If the company places an annual purchase order for 1,800 units of these caps, its average annual inventory, in units, is between: ( )1,500 and 1,300 ( )3,200 and 3,000 ( )2,400 and 2,200 ( )1,200 and 1,000 ( )1,900 and 1,700
In the basic EOQ model, if annual demand doubles, the EOQ will O a. increase by about 41.42 percent O b. decrease by 48.42% O c. double O d. None of these O e. be about 70.7 percent of its previous amount
solve manually
Ross White’s Machine Shop is located in Central Trinidad and specializes in designing components for the energy industry in Trinidad and Tobago. Ross White's machine shop uses 2500 brackets during the course of a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15 each, and the lead time is 2 days. The holding cost per bracket per year is $1.50 (or 10% of the unit cost) and the ordering cost is $18.75. There are 250 working days per year. a) i) What is Ross White's optimal order quantity? ii) What is the company's total annual cost of inventory? b) Ross White wants to re-consider his decision of buying the brackets and is considering making the brackets in-house. He has determined that set-up cost would be $25 in machinist time and lost production time. Ross estimates that the cost (including labor time and materials) of producing one bracket would be S 14.80, and that holding cost will be 10% of…
A manufacturer produces umbrellas. The production rate is 500 per day. The monthly demand for umbrellas is 2100 (and so usage per day is 70). Setup cost is $60 and holding cost is $1 per umbrella per month. What is the economic production quantity? (Use the nearest whole number) OA. 775 OB. 541 OC. 835 OD. 620 OE. 894 OF. 693 O.G.502 OH.899
Nestle Ltd. produces its premium plant food in 50 Kg bags. Demand is 100,000 Kgs. per week and the plant operates 50 weeks each year Nestle can produce 250,000 Kgs. per week. The setup cost is OMR 200 and the annual holding cost rate is OMR 1 per bag What is the optimal (time) length of uptime in years? a 0.031 b. 0.039 C. 0.023 D. 0.033 E. None is correct
11. A company that produces hair dryers makes its heating elements in house. Those pieces can be produced at a rate of 800 per day. Their total hair dryer demand reaches to 50000 per year and the company operates 250 days in a year. Then it can be concluded that they can use 50000/250= 200 units/day in order to ship to the customers. The assembly continues whole year uniformly. Carrying(holding) cost is 0,5 TL and setup cost for a run is 35 TL. a. Compute the economic production quantity (EPQ). b. Compute the cycle time. c. Compute the run time.
A manufacturer’s annual demand is 6000 units. The current units per order is $100. The setup cost is $50 per order and the holding cost is $7 per unit. The cost per unit is $2.50. The Number of work days is 250 per year. What is the annual setup cost? What is the annual holding cost? What is the optimal order quantity (EOQ)? Using the EOQ, how many orders should be placed per year? What is the interval between orders? What is the inventory administration cost? What is the total cost of inventory?
Answer on b) Sales price = 80 kr Purchase price = 30 kr 80 – 30 = 50 kr profit 20 magazines * 80 kr = 1.6000 kr which will maximize the profit over time. Still dont get the answer on question c)

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