Logo
Home Study Material Contact Search
AI Chat FREE
  1. mathematics
  2. advance math
  3. ross white (see problem 9) wants to reconsider his

Ross White (see Problem 9) wants to reconsider his decision of buying the brackets and is...

50.1K

Verified Solution

Question

Advance Math

  1. Ross White (see Problem 9) wants to reconsider his decision ofbuying the brackets and is considering making the bracketsin-house. He has determined that setup costs would be $25 inmachinist time and lost production time, and 50 brackets could beproduced in a day once the machine has been set up. Ross estimatesthat the cost (including labor time and materials) of producing onebracket would be $14.80. The holding cost would be 10% of thiscost.

(a) What is the daily demand rate?

(b) What is the optimal productionquantity?

(c) How long will it take to producethe optimal quantity? How much inventory is sold during thistime?

(d) If Ross uses the optimalproduction quantity, what would be the maximum inventory level?What would be the average inventory level? What is the annualholding cost?

(e) How many production runs wouldthere be each year? What would be the annual setup cost?

(f) Given the optimal production runsize, what is the total annual inventory cost?

(g) If the lead time is one-half day,what is the ROP?

Answer & Explanation Solved by verified expert
3.6 Ratings (406 Votes)
    See Answer
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

Professor Wendy Smith has been offered the following? opportunity: A law firm would like to retain...

Statistics
1.2K views

The manufacturer of an MP3 player wanted to know whether a 10% reduction in price is...

Biology
1.2K views

Replacement of Ser with Thr QUESTION 10 Which one of the following statements A D...

Biology
1.2K views

86 For theorists Karl Marx and Friedrich Engels the most important class distinction in capitalist...

Basic Math
1.2K views

Rearrange and isolate the indicated variables a M in S C M b P in...

Basic Math
1.2K views

A hospital has 5 doctors (Dr. A, Dr. B, Dr. C, Dr. D and Dr....

Calculus
1.2K views

1 1 y y at Final Position m 82 44 102 51 163 46 286...

Algebra
1.2K views

Suppose the roots of a Show that r r2 quadratic equation ax bx c 0...

Accounting
1.2K views

Determine the treatment of each of the following items: Y-Mart Store has a policy of...

Accounting
1.2K views

Jastak Company utiliza el mtodo de promedio ponderado en su sistema de costeo por procesos....

Accounting
1.2K views

Using the Starbucks financial statements provided on Blackboard, calculate and interpret the operating cycle. Assume...

Accounting
1.2K views

At the beginning of the period, the Mixing Department budgeted direct labor of $62,000 and...