2. A toy manufacturer uses 48,000 rubber wheels per year for its dump truck. The trucks are assembled over the entire year. The firm makes its own wheels at a rate of P800 per day and makes them in batches/lots. The holding cost is P1 per wheel per year. Setup cost is P45 per order. The firm operates 240 days per year. a. How many wheels should they make at a time? b. How much is the demand rate per day? c. How much is the POQ? d. How much is the total inventory cost? e. What is the length of the production run?
2. A toy manufacturer uses 48,000 rubber wheels per year for its dump truck. The trucks are assembled over the entire year. The firm makes its own wheels at a rate of P800 per day and makes them in batches/lots. The holding cost is P1 per wheel per year. Setup cost is P45 per order. The firm operates 240 days per year. a. How many wheels should they make at a time? b. How much is the demand rate per day? c. How much is the POQ? d. How much is the total inventory cost? e. What is the length of the production run?
Purchasing and Supply Chain Management
6th Edition
ISBN:9781285869681
Author:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Publisher:Robert M. Monczka, Robert B. Handfield, Larry C. Giunipero, James L. Patterson
Chapter16: Lean Supply Chain Management
Section: Chapter Questions
Problem 10DQ: The chapter presented various approaches for the control of inventory investment. Discuss three...
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