A publishing Company produces books for the retail market. Demand for a current book is expected...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7500 copies. The cost of one copy of the book is $27.50. The holding cost is based on 18% annual rate, and production setup costs are $550.00. The equipment on which the book is produced has an annual production volume of 21,000 copies. The Company uses 250 working days per year and the lead time for a production run is 12 days. Assume the company is willing to tolerate one stock-out per year and that the lead time demand follows a normal distribution with a standard deviation of 75 copies. Using an appropriate Fixed Order Quantity system model compute the following: (a) Minimum cost production lot size (whole number with no commas)- copies (b) Number of production runs per year (two decimal points) - runs (c) Cycle time (two decimal points) - days (d) Length of production run (two decimal points) - days copies (e) Maximum inventory (use the closest Z value, answer whole number) - (f) The reorder point (whole number) copies (g) Total annual stocking cost (two decimal points with no commas) - $ A publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7500 copies. The cost of one copy of the book is $27.50. The holding cost is based on 18% annual rate, and production setup costs are $550.00. The equipment on which the book is produced has an annual production volume of 21,000 copies. The Company uses 250 working days per year and the lead time for a production run is 12 days. Assume the company is willing to tolerate one stock-out per year and that the lead time demand follows a normal distribution with a standard deviation of 75 copies. Using an appropriate Fixed Order Quantity system model compute the following: (a) Minimum cost production lot size (whole number with no commas)- copies (b) Number of production runs per year (two decimal points) - runs (c) Cycle time (two decimal points) - days (d) Length of production run (two decimal points) - days copies (e) Maximum inventory (use the closest Z value, answer whole number) - (f) The reorder point (whole number) copies (g) Total annual stocking cost (two decimal points with no commas) - $
Expert Answer:
Answer rating: 100% (QA)
Answer a 16137 copies b 464 runs per year c 5379 days d 1613days e 112959 copies f 375440 g 360 copi... View the full answer
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
Posted Date:
Students also viewed these accounting questions
-
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7200 copies. The cost of one copy of the book is $14.50....
-
For a distribution with a standard deviation of = 20, describe the location of each of the following z-scores in terms of its position relative to the mean. For example, z = 11.00 is a location that...
-
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 7200 copies. The cost of one copy of the book is $14.50....
-
In the OKR goal-setting framework, what is the difference between objectives and key results? Objectives deal with measurable aspects of a company's processes, while key results deal with...
-
How does Valium work?
-
Draw the Lewis electron dot diagram for each substance. Double or triple bonds may be needed. a. SiO2 b. C2H4 (assume two central atoms)
-
The number of weekly breakdowns of a computer is a random variable having a Poisson distribution with \(\lambda=0.2\). What is the probability that the computer will operate without a breakdown for 3...
-
Kendall Jackson, CPA, is examining the operating effectiveness of the internal control of Town Mo, a large conglomerate in the music industry. As part of the evaluation, Jackson determined a...
-
4 Smallman's Garage uses standards to plan and control labor time and expense. The standard time for an engine tune-up is 3.75 hours. and the standard labor rate is $15 per hour. Last week, 26...
-
American Surety and Fidelity buys and sells securities expecting to earn profits on short-term differences in price. For the first 11 months of 2024, gains from selling trading securities totaled $8...
-
Kiah is experiencing contractions that are 10 minutes apart and the amniotic sac just ruptured. What stage of labor are they in?
-
Nationally, the disparity of rates between black and nonblacks was much greater for _ _ _ _ _ _ offenses. Select one: a . drug b . violent c . property d . fraudulent
-
Alaya's Secret is a chain of beauty salons, where part of the employees' monthly leave time is granted depending on customer feedback. Two days of leave are granted based on performance, and the...
-
Can you help me solve this using this data and make the path length =0.05 Part II. Ferrichrome A. Your TA will give you a solution of unknown concentration of ferrichrome A. From its millimolar...
-
*(f) The infrared spectrum of this unknown shows a strong peak near 1715 cm. Relative Abundance 100 80- 60 40- 20- 43 72 L 20 25 30 35 40 45 50 55 60 65 70 75 80 85 90 95 100 105 110 115 120 125 130...
-
Subang to thogong boyredo ne TO el gubwollo) sa zoban visart 5. The analysis of a rocket fuel showed that it contained 87.4% nitrogen and 12.6% hydrogen by weight. The fuel's molar mass was...
-
The following table shows an abbreviated income statement and balance sheet for Quick Burger Corporation for 2022. INCOME STATEMENT OF QUICK BURGER CORPORATION, 2022 (Figures in $ millions) Net sales...
-
Selected condensed data taken from a recent statement of financial position of Morino Ltd. are as follows. MORINO LTD. Statement of Financial Position (partial) Other current assets...
-
Suppose that you are given a decision situation with three possible states of nature: s1, s2, and s3. The prior probabilities are P(s1) = 0.2, P(s2) = 0.5, and P(s3) = 0.3. With sample information I,...
-
Does the following linear program involve infeasibility, unbounded, and/or alternative optimal solutions? Explain. Max 1A + 1B s.t. 8A + 6B 24 2B 4 A, B 0
-
The Gilbert Air-Conditioning Company is considering the purchase of a special shipment of portable air conditioners manufactured in Japan. Each unit will cost Gilbert $80, and it will be sold for...
-
You are studying survival times for mice given a drug at one of three doses (Low, Medium, or High). You define two dummy variables: (a) With these definitions, write the expressions for the mean...
-
The data in Table 8.25 were collected in order to study factors affecting the supply and demand for commercial air travel. Data on various aspects of commercial air travel for an arbitrarily chosen...
-
It is beneficial to be able to estimate the yield of useful product of a tree based on measurements of the tree taken before it is harvested. Measurements on four such variables were taken on a...
Study smarter with the SolutionInn App