Operations Management: Sustainability and Supply Chain Management (12th Edition)
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 production manager of Wheel-Rite. a small producer of metal parts. Wheel-Rite supplies Cal-Tex, a larger assembly company, with 10,000 wheel bearings each year. This order has been stable for some time. Setup cost for Wheel-Rite is $40, and holding cost is $.60 per wheel bearing per year. Wheel-Rite can produce 500 wheel bearings per day. Cal-Tex is a just-in-time manufacturer and requires that 50 bearings be shipped to it each business day.

  1. a. What is the optimum production quantity?
  2. b. What is the maximum number of wheel bearings that will be in inventory at Wheel-Rite?
  3. c. How many production runs of wheel bearings will Wheel-Rite have in a year?
  4. 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 for​Wheel-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 - 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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