Operations Management: Sustainability and Supply Chain Management (12th Edition)
12th Edition
ISBN: 9780134130422
Author: Jay Heizer, Barry Render, Chuck Munson
Publisher: PEARSON
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Chapter 12, Problem 20P
Arthur Meiners is the
- a. What is the optimum production quantity?
- b. What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?
- c. How many production runs of wheel bearings will Wheel-Rite have in a year?
- d. What is the total setup + holding cost for Wheel-Rite?
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Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 9,500-wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $39, and holding cost is $0.40 per wheel bearing per year. Wheel-Rite can produce 550-wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 50 bearings be shipped to it each business day.
a) What is the optimum production quantity? _______ units
b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?
c) How many production runs of wheel bearings will Wheel-Rite have in a year?
d) What is the total setup plus holding cost for Wheel-Rite?
Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 11,300wheel bearings each year. This order has been stable for some time. Setup cost forWheel-Rite is $41, and holding cost is $0.60 per wheel bearing per year. Wheel-Rite can produce 490 wheel bearings per day. Cal Tex is a just-in-time manufacturer and requires that 52 bearings be shipped to it each business day.
a) What is the optimum production quantity? units (round your response to the nearest whole number).
b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite? units (round your response to the nearest whole number).
c) How many production runs of wheel bearings will Wheel-Rite have in a year? runs (round your response to two decimal places).
d) What is the total setup plus holding cost for Wheel-Rite?
$ (round your response to two decimal places).
Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a
larger assembly company, with 9,600 wheel bearings each year. This order has been stable for some time. Setup cost for
Wheel-Rite is $41, and holding cost is $0.70 per wheel bearing per year. Wheel-Rite can produce 490 wheel bearings per day.
Cal-Tex is a just-in-time manufacturer and requires that 52 bearings be shipped to it each business day.
a) What is the optimum production quantity?
units (round your response to the nearest whole number).
Chapter 12 Solutions
Operations Management: Sustainability and Supply Chain Management (12th Edition)
Ch. 12 - Question 1. Describe the four types of inventory.Ch. 12 - Question
2. With the advent of low-cost...Ch. 12 - Question
3. What is the purpose of the ABC...Ch. 12 - Question
4. Identify and explain the types of...Ch. 12 - Question 5. Explain the major assumptions of the...Ch. 12 - Question 6. What is the relationship of the...Ch. 12 - Question
7. Explain why it is not necessary to...Ch. 12 - Question 8. What are the advantages of cycle...Ch. 12 - What impact does a decrease in setup time have on...Ch. 12 - When quantity discounts are offered, why is it not...
Ch. 12 - What is meant by service level?Ch. 12 - Explain the following: All things being equal, the...Ch. 12 - Describe the difference between a fixed-quantity...Ch. 12 - Explain what is meant by the expression robust...Ch. 12 -
15. What is “safety stock”? What does safety...Ch. 12 - When demand is not constant, the reorder point is...Ch. 12 - How are inventory levels monitored in retail...Ch. 12 - State a major advantage, and a major disadvantage,...Ch. 12 - L. Houts Plastics is a large manufacturer of...Ch. 12 - Boreki Enterprises has the following 10 items in...Ch. 12 - Jean-Marie Bourjollys restaurant has the following...Ch. 12 - Lindsay Electronics, a small manufacturer of...Ch. 12 - William Bevilles computer training school, in...Ch. 12 - • 12.6 If D = 8,000 per month, S = $45 per order,...Ch. 12 - Henry Crouchs law office has traditionally ordered...Ch. 12 - Matthew Liotines Dream Store sells beds and...Ch. 12 - Southeastern Bell stocks a certain switch...Ch. 12 - Lead time for one of your fastest-moving products...Ch. 12 - Annual demand for the notebook binders at Duncans...Ch. 12 - Thomas Kratzer is the purchasing manager for the...Ch. 12 - Joe Henrys machine shop uses 2,500 brackets during...Ch. 12 - Abey Kuruvilla, of Parkside Plumbing, uses 1,200...Ch. 12 - ••• 12.15 M. Cotteleer Electronics supplies...Ch. 12 - •• 12.16 Race One Motors is an Indonesian car...Ch. 12 - Radovilsky Manufacturing Company, in Hayward,...Ch. 12 - Arthur Meiners is the production manager of...Ch. 12 - Cesar Rego Computers, a Mississippi chain of...Ch. 12 - Bell Computers purchases integrated chips at 350...Ch. 12 - Wang Distributors has an annual demand for an...Ch. 12 - Question 12.22 The catering manager of La Vista...Ch. 12 - Prob. 25PCh. 12 - Prob. 26PCh. 12 - Prob. 27PCh. 12 - Question 12.26 Emery Pharmaceutical uses an...Ch. 12 - Prob. 29PCh. 12 - Prob. 30PCh. 12 - Question 12.27 Barbara Flynn is in charge of...Ch. 12 - Question 12.28 Based on available information,...Ch. 12 - Question 12.29 Authentic Thai rattan chairs...Ch. 12 - Question 12.30 Tobacco is shipped from North...Ch. 12 - Prob. 45PCh. 12 - Question 12.32 Chicagos Hard Rock Hotel...Ch. 12 - Question 12.33 First Printing has contracts with...Ch. 12 - Prob. 48PCh. 12 - Question 12.40 A gourmet coffee shop in downtown...Ch. 12 - Question 12.36 Cynthia Knotts oyster bar buys...Ch. 12 - Question 12.37 Henrique Correas bakery prepares...Ch. 12 - Question 12.38 University of Florida football...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Question Zhou Bicycle Company Zhou Bicycle...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Parker Hi-Fi Systems Parker Hi-Fi Systems, located...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Question Frito-Lay has flourished since its...Ch. 12 - Inventory Control at Wheeled Coach Video Case...Ch. 12 - Prob. 2.2VCCh. 12 - Prob. 2.3VC
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- Arthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 9,700 wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $39, and holding cost is $0.60 per wheel bearing per year. Wheel-Rite can produce 450 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 48 bearings be shipped to it each business day. a) What is the optimum production quantity?units (round your response to the nearest whole number).arrow_forwardArthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 11,200 wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $39, and holding cost is $0.50 per wheel bearing per year. Wheel-Rite can produce 510 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 51 bearings be shipped to it each business day. a) What is the optimum production quantity? response to the nearest whole number). units (round yourarrow_forwardArthur Meiners is the production manager of Wheel-Rite, a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 11,200 wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $39, and holding cost is $0.50 per wheel bearing per year. Wheel-Rite can produce 510 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 51 bearings be shipped to it each business day. a) What is the optimum production quantity? 1393 units (round your response to the nearest whole number). b) What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite? units (round your response to the nearest whole number).arrow_forward
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