Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 6,900 copies. The cost of one copy of the book is $12. The holding cost is based on an 19% annual rate, and production setup costs are $135 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 17 days. Use the production lot size model to compute the following values: a. Minimum cost production lot size. Round your answer to the nearest whole number. Do not round intermediate values. Q* - e. Maximum inventory. Round your answer to the nearest whole number. Do not round intermediate values. Maximum inventory = g. Reorder point. Round your answer to the nearest whole number. Do not round intermediate values.
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 6,900 copies. The cost of one copy of the book is $12. The holding cost is based on an 19% annual rate, and production setup costs are $135 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 17 days. Use the production lot size model to compute the following values: a. Minimum cost production lot size. Round your answer to the nearest whole number. Do not round intermediate values. Q* - e. Maximum inventory. Round your answer to the nearest whole number. Do not round intermediate values. Maximum inventory = g. Reorder point. Round your answer to the nearest whole number. Do not round intermediate values.
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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Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 6,900 copies. The cost of one copy of the book is $12. The holding cost is based on an 19% annual rate, and production setup costs are $135 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 17 days. Use the production lot size model to compute the following values:
![**Wilson Publishing Company Production Analysis**
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 6,900 copies. The cost of one copy of the book is $12. The holding cost is based on a 19% annual rate, and production setup costs are $135 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 17 days. Use the production lot size model to compute the following values:
a. **Minimum Cost Production Lot Size**
Round your answer to the nearest whole number. Do not round intermediate values.
\( Q^* = \) [___]
e. **Maximum Inventory**
Round your answer to the nearest whole number. Do not round intermediate values.
Maximum inventory = [___]
g. **Reorder Point**
Round your answer to the nearest whole number. Do not round intermediate values.
\( r = \) [___]
**Note**: There are no graphs or diagrams associated with this text.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F81a49520-1027-4f23-8f4c-cd9184719c2e%2F230c4419-8a5d-4e7c-ae5d-c0a73b2200ca%2Fjcgpf6m_processed.png&w=3840&q=75)
Transcribed Image Text:**Wilson Publishing Company Production Analysis**
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 6,900 copies. The cost of one copy of the book is $12. The holding cost is based on a 19% annual rate, and production setup costs are $135 per setup. The equipment on which the book is produced has an annual production volume of 21,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 17 days. Use the production lot size model to compute the following values:
a. **Minimum Cost Production Lot Size**
Round your answer to the nearest whole number. Do not round intermediate values.
\( Q^* = \) [___]
e. **Maximum Inventory**
Round your answer to the nearest whole number. Do not round intermediate values.
Maximum inventory = [___]
g. **Reorder Point**
Round your answer to the nearest whole number. Do not round intermediate values.
\( r = \) [___]
**Note**: There are no graphs or diagrams associated with this text.
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