JL.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
JL.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates 290 days per year and has annual demand of 50,000 bumpers. They can produce up to 340 bumpers each day. It costs $80 to set up the production line to produce bumpers. The cost of each bumper is $108 and annual holding costs are $22 per unit. Setup labor cost is $23 per hour. What is the optimal size of the production run for bumpers? (Display your answer to the nearest whole number.) Number Based on your answer to the previous question, and assuming the manufacturer holds no safety stock, what would be the average inventory for these bumpers? (Display your answer to the nearest whole number.) Number Based on your answer two questions back, how many production runs will be required each year to satisfy demand? HINT: As a general rule, whenever calculating a value that is based on previous calculations in Excel, always be sure to use cell references rather than a rounded value as a calculation input. (Display your answer to the appropriate whole number.) Number Suppose the customer (an auto manufacturer) wants to purchase in lots of 290 and that Bob's Bumpers is able to reduce setup costs to the point where 290 is now the optimal production run quantity. How much will they save in annual holding costs with this new lower production quantity? (Display your answer to two decimal places.) Number How much will they save in annual setup costs with this new lower production quantity? (Display your answer to two decimal places.) Number JL.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates 290 days per year and has annual demand of 50,000 bumpers. They can produce up to 340 bumpers each day. It costs $80 to set up the production line to produce bumpers. The cost of each bumper is $108 and annual holding costs are $22 per unit. Setup labor cost is $23 per hour. What is the optimal size of the production run for bumpers? (Display your answer to the nearest whole number.) Number Based on your answer to the previous question, and assuming the manufacturer holds no safety stock, what would be the average inventory for these bumpers? (Display your answer to the nearest whole number.) Number Based on your answer two questions back, how many production runs will be required each year to satisfy demand? HINT: As a general rule, whenever calculating a value that is based on previous calculations in Excel, always be sure to use cell references rather than a rounded value as a calculation input. (Display your answer to the appropriate whole number.) Number Suppose the customer (an auto manufacturer) wants to purchase in lots of 290 and that Bob's Bumpers is able to reduce setup costs to the point where 290 is now the optimal production run quantity. How much will they save in annual holding costs with this new lower production quantity? (Display your answer to two decimal places.) Number How much will they save in annual setup costs with this new lower production quantity? (Display your answer to two decimal places.) Number
Expert Answer:
Answer rating: 100% (QA)
Lets solve these inventory management questions step by step 1 Optimal Production Run Size Q We can ... View the full answer
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date:
Students also viewed these general management questions
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...
-
A company produces batteries in batches. The estimated annual demand is 11, 500 units. It costs about $100.00 to setup the manufacturing process, and the carrying cost is about $1.50 per unit per...
-
In Pissarides's view of labor markets (job matching model), the focus is on finding a good ________. a. level of TFP (A) b. supply of money (M). c. match d. Wage
-
Providence Medical Center bought equipment on January 2 for $39,000. The equipment was expected to remain in service for four years and to perform 1,240 operations. At the end of the equipment's...
-
The following table shows the proportions of instruction execution for the different instruction types. Given the instruction mix above and the assumption that an arithmetic instruction requires 2...
-
A well-known insurance company offers a policy known as the Estate Creator Six Pay. Typically the policy is bought by a parent or grandparent for a child at the childs birth.The details of the policy...
-
On January 1, 2019, Sharon Matthews established Tri-City Realty, which completed the following transactions during the month: a. Sharon Matthews transferred cash from a personal bank account to an...
-
How do you compute the EAY of a semi-annual coupon bond? A. You assume that the bond is twice as long as its actual maturity to compute the discount rate r, then the EAY is 2*r B. You assume that the...
-
4. (Chapter 3) Skycell, a major European cell phone manufacturer, is making production plans for the coming year. Skycell has worked with its customers (the service providers) to come up with...
-
How does modernization theory analyze the role of Westernization and cultural diffusion in driving the modernization process, including the spread of Western values, institutions, and lifestyles?
-
For the following simply supported beam: a) Determine equations for V(x) and M(x) for sections 0 x 14 and 14 x20. Box your answers. b) Roughly sketch the shear and bending moment diagram for the...
-
You are preparing for a top-level meeting between the Minister of International Trade, the Minister of Foreign Affairs, and senior business executives representing several multinational corporations...
-
1. A rope AB 6 m long is connected at two points A and B at the same level 4.5 m apart. A load of 2000 N is suspended from point C on the rope at 2 m from A, as shown in the figure below. What load...
-
Assume that Fake Stone, Inc. is operating at full capacity. Also assume that assets, costs, and current liabilities vary directly with sales. The dividend payout ratio is constant. The Companys sales...
-
A given hardware contains 5 logic blocks that require 20ns, 35ns, 15ns, 50ns and 25ns respectively. The latches require 10ns to load. To speed up the operation, you pipelined the hardware. Draw your...
-
Use Excel to calculate probabilities for the following questions: Suppose you conducted a study to find evidence for extra-sensory perception (ESP) by asking subjects to identify the color (red or...
-
What types of questions can be answered by analyzing financial statements?
-
Triplett attempted to arrange a $2,850,000 loan through Meyer Rabin and his Consumers Investment Company (CIC). CIC issued a commitment letter conditioned on the payment of a $14,250 commitment fee...
-
Taylor assaulted his wife, who then took refuge in Ms. Harringtons house. The next day, Mr. Taylor entered the house and began another assault on his wife, who knocked him down and, while he was...
-
On May 26, the trial examiner issued his Intermediate Report finding that the respondent (Sailers Union) had not engaged in unfair union practices under Section 8(b) in its dispute with Samsoc. With...
-
The following information for Great Oaks Furniture, a retail furniture and design firm, relates to Exercises 6 through 11. Calculate asset turnover, accounts receivable Mattmm turnover, days sales in...
-
Safeway, Inc. is a large food and drug retailer with more than 1,700 stores in the U.S. and Canada. The following financial information relates to fiscal 2009 and 2008. Required Calculate inventory...
-
Comparative income statements for Cramer Carpets, a carpet retailer, are given below: The president is concerned that net income is down in 2009 even though sales have increased during the year. The...
Study smarter with the SolutionInn App