Production and Operations Analysis, Seventh Edition
Production and Operations Analysis, Seventh Edition
7th Edition
ISBN: 9781478623069
Author: Steven Nahmias, Tava Lennon Olsen
Publisher: Waveland Press, Inc.
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Chapter 4, Problem 42AP
Summary Introduction

Interpretation:The optimal size of each production run are tibe determined assuming that cards are produced at the rate of 75,000 per week.

Concept Introduction:

Economic order quantity sometimes EOQ refers to the technique that is used by the organizations to determine the quantity and volumeororder needed to fulfill the customer demand while minimizing the cost of the item.

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The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery,which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies perday. The bakery sets up the pie production operation and produces until a predetermined number(Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facilitiesfor producing other bakery items. The setup cost for a production run of fruit pies is $500.The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozenfruit pies, which is constant over time, is 5,000 pies. Determine The optimal number of production runs per year
The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery,which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies perday. The bakery sets up the pie production operation and produces until a predetermined number(Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facilitiesfor producing other bakery items. The setup cost for a production run of fruit pies is $500.The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozenfruit pies, which is constant over time, is 5,000 pies. Determine The total annual inventory costs
The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery,which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies perday. The bakery sets up the pie production operation and produces until a predetermined number(Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facilitiesfor producing other bakery items. The setup cost for a production run of fruit pies is $500.The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozenfruit pies, which is constant over time, is 5,000 pies. Determine The optimal cycle time (time between run starts)
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