- 07.08.2019
- Economic Buy Quantity and

OPERATIONS MANAGEMENT B3401

PROJECT # a few (Total 90 points)

Due on November 16 2010 (Tuesday)

(Write your name, pupil #, section # in which you are registered)

Q1. (Total 20 points)

The FS factory can produce wieners for a price of your five, 000 daily. FS items wieners to local retailers at a steady rate of 250 every day. The cost of preparing the equipment to get producing wieners is $22. Annual possessing costs are 15 cents per wiener. The factory operates 300 days and nights a year. Find: 1) The perfect total production quantity every cycle plus the corresponding maximal on-hand share level. 2) The optimal range of cycles per year

3) The optimal length of every cycle.

Q2. (Total 30 points)

A manufacturer of exercise equipment acquisitions the pully section of the gear from a supplier who have lists these prices: less than a thousand, $5 each; 1, 1000 to 3, 999, $4. 96 each; four, 000 to 5, 999, $4. 9 every single; and six, 000 or maybe more, $4. eighty five each. Purchasing costs are $50 every order, twelve-monthly carrying costs are 45 percent of purchase cost, and total annual usage is definitely 4, 900 pulleys. Identify an buy quantity that will minimize the entire cost (Ordering + Keeping + Purchase).

Q3. (Total 50 points)

Harvey's Specialised Shop is a superb spot specialists international premium foods. One of the items that Harvey sells is a popular mustard that he buys from a language company. The mustard costs $10 a jar and requires a 2-month lead time for replenishment of stock. The replenishment time is almost constant. Harvey uses a 20% interest per annum rate to compute keeping costs. Accounting expenses pertaining to placing an order figure to about $50. During the 2-month supply period, Harvey estimates that he sells typically 100 containers but there may be substantial variant. He quotes the standard change of with regard to each 2-month period is usually 25. Imagine demand is usually described by a normal syndication. (3 & 3 + 4 + 8 + 12 & 20 = 50 points) a) Precisely what is the optimal buy quantity?

b) What will be the average...

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