Question: Be sure to always round inventory quantities (Q, R, $5, Imax) values up to the next integer for the final answers. All other values should


Be sure to always round inventory quantities (Q, R, $5, Imax) values up to the next integer for the final answers. All other values should be calculated based on the standard formulas without rounding them to integers and should be entered with one decimal place (e.g. average inventory, average number of orders, etc.).M112 Greg Puliski is the production manager of Bearings USA, inc; a small producer of metal parts. Bearings USA supplies Asheyille Manufacturing a larger assembly company, with 10,000 wheel bearings each year. Bearings USA can produce 500 wheel bearings per day. Asheyille Manufacturing uses 50 bearings each day and requires that exactly 50 bearings be shipped to its business each day from Bearings USA, inc. The cost to set up the production process is $110; and it costs 513'5 to carry one bearing in inyentory for one year a} What is the optimal economic production quantity? b} On ayerage, hoyi.r many setups are required per year {one decimal place]? c} What is the total cost per year [holding plus setup]
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
