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April 17, 2014

Homework Help: A. Production

Posted by D.Martin on Thursday, April 26, 2007 at 11:00am.

A toy manufacturing makes its own wind-up motors, which are then put into its toys. While the toy manufacturing process is continous, the motors are intermittent flow. Data on the manufacture of the motors appears below.
Annual demand (D)=50,000 units
Set-up cost(S)=$85 per batch
Carry cost=$.20 per unit per year
Daily subassembly production rate=1,000
Daily subassembly usage rate=200

a. To minimize cost, how large should each batch of subassemblies be?
b. Approximatley how many days are required to produce a batch?
c.How long is a complete cycle?
d. What is the average inventory for this problem?
e.What is the total inventory cost (rounded to the nearest dollar) of the optimal behavior in this problem?

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