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Think of an enterprise that produces “C” kind fire extinguishers. They manufacture 30,000 extinguishers per year. Each extinguisher requires a handle. Suppose that the storage cost is 1.5 dollars per handle, the production preparation cost is 150 dollars and the daily production ratio is 300. A labour year is 300 days. Which will the optimal amount of production be?

Think of an enterprise that produces “C” kind fire extinguishers. They manufacture 30,000 extinguishers per year. Each extinguisher requires a handle. Suppose that the storage cost is 1.5 dollars per handle, the production preparation cost is 150 dollars and the daily production ratio is 300. A labour year is 300 days. Which will the optimal amount of production be?

Practical Management Science
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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Think of an enterprise that produces “C” kind fire extinguishers. They manufacture 30,000
extinguishers per year. Each extinguisher requires a handle. Suppose that the storage cost is
1.5 dollars per handle, the production preparation cost is 150 dollars and the daily production
ratio is 300. A labour year is 300 days. Which will the optimal amount of production be?

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