What is the optimal number of housing for HAL Ltd. to produce in each production run? b) Find the time between initiation of production runs, the time devoted to production and the downtime each production cycle. c) Calculate the maximum level of inventory in the warehouse in this case.
What is the optimal number of housing for HAL Ltd. to produce in each production run? b) Find the time between initiation of production runs, the time devoted to production and the downtime each production cycle. c) Calculate the maximum level of inventory in the warehouse in this case.
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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Question
HAL Ltd. produces a line of high-capacity disk drivers for mainframe computers. It can
produce the disk drive housings at the rate of 150 housings per month. The housing cost
85$ each to produce and the setup cost for beginning of a production run is 700$. Assume
the annual interest rate of 28% for determining the holding cost and the demand is 720
units per year.
a) What is the optimal number of housing for HAL Ltd. to produce in each production
run?
b) Find the time between initiation of production runs, the time devoted to production
and the downtime each production cycle.
c) Calculate the maximum level of inventory in the warehouse in this case.
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