EBK OPERATIONS MANAGEMENT
13th Edition
ISBN: 8220103675987
Author: Stevenson
Publisher: YUZU
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Chapter 13, Problem 9P
The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find the following:
a. The optimal run size
b. The number of runs per year
c. How many days it takes to produce the optimal nm quantity
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The friendly sausage factory (FSF) can produce hot dogs at a rate of 6.000 per day. FSF supplies hot doges to local restaurants at a steady rate of 370 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 48 cents per hot dog. the factory operates 288 days a year.
a. Find the optimal run size
b. find the number of runs per year
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A toy manufacturer makes its own wind-up motors, which are then put into its toys. While
the toy manufacturing process is continuous, the motors are intermittent flow. Data on
the manufacture of the motors appears below.
Annual demand (D) = 50,000 units
Daily subassembly production rate = 1,000
Daily subassembly usage rate = 200
Setup cost (S) = $85 per batch
Carrying cost = $.20 per unit per year
calculate:
i.
optimal order quantity
i.
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ii.
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29) XYZ Company
The XYZ Company uses 175 handles per day. The company operates 300 days per year. It costs $2.00 to carry one handle in inventory for one year. When handle inventory is low, an order is sent to the fabrication department to manufacture more handles. Fabrication can produce handles at a rate of 1500 per day and send the handles over to assembly while production is in progress. The setup for each production run costs $500.
In order to calculate the EOQ, the XYZ company utilizes the __________ model.
Group of answer choices
a) Basic EOQ
b) Production Quantity
c) Optimal Production
Chapter 13 Solutions
EBK OPERATIONS MANAGEMENT
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