Hamford Lumber would like to reduce its inventory cost by determining the optimal number of hardwood...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Hamford Lumber would like to reduce its inventory cost by determining the optimal number of hardwood boards to obtain by order. The annual demand is for 7700 boards but there is a 5% waste (meaning more than 7700 must be purchased). The set up and order cost is $12 per order and holding cost per board is $0.85. What is the optimal number of boards to order and the optimal number of orders to make in a year? Compare and contrast JIT and Lean Operations? What are these and how do they differ? If you have one does this mean you cannot have another? Explain. Identify and discuss the benefits and all the steps you might take to reduce set up times in an automotive factory environment if you were the CEO. Provide a numerical example for each set up time improvement opportunity you identify with your response. Hamford Lumber would like to reduce its inventory cost by determining the optimal number of hardwood boards to obtain by order. The annual demand is for 7700 boards but there is a 5% waste (meaning more than 7700 must be purchased). The set up and order cost is $12 per order and holding cost per board is $0.85. What is the optimal number of boards to order and the optimal number of orders to make in a year? Compare and contrast JIT and Lean Operations? What are these and how do they differ? If you have one does this mean you cannot have another? Explain. Identify and discuss the benefits and all the steps you might take to reduce set up times in an automotive factory environment if you were the CEO. Provide a numerical example for each set up time improvement opportunity you identify with your response.
Expert Answer:
Answer rating: 100% (QA)
Optimal Number of Boards to Order Annual demand 7700 boards 5 waste 005 7700 385 boards Total boards needed Demand Waste 7700 385 7085 boards Set up c... View the full answer
Related Book For
Managing Business Ethics Making Ethical Decisions
ISBN: 9781506388595
1st Edition
Authors: Alfred A. Marcus, Timothy J. Hargrave
Posted Date:
Students also viewed these general management questions
-
Does demoing boost sales during the demoing period? b. If so, is the boost temporary, or does demoing boost sales beyond the demoing period? c. Do the endcap display contests boost sales.
-
Sharp, Inc., a company that markets painless hypodermic needles to hospitals, would like to reduce its inventory cost by determining the optimal number of hypodermic needles to obtain per order. The...
-
Taunton's is an all-equity firm that has 151,000 shares of stock outstanding. The CFO is considering borrowing $233,000 at 7 percent interest to repurchase 20,000 shares. Ignoring taxes, what is the...
-
Determine the maximum principal stresses in the member with a re-entrant corner as shown in Figure P7-17. At what location are the principal stresses largest? Let E = 30 106 psi and v = 0.25. Use...
-
For the following exercises, write the equation of an ellipse in standard form, and identify the end points of the major and minor axes as well as the foci. 4x 2 + 40x + 25y 2 100y + 100 = 0
-
Discuss the primary economic indicators used to determine the functional currency of an entity?
-
Golden Gardens Inc. develops and produces spraying equipment for lawn maintenance and industrial uses. On June 19 of the current year, Golden Gardens Inc. reacquired 24,000 shares of its common stock...
-
11. Combustion of 1 mole of C6H6(l) inside a closed container of constant volume liberates 900 kJ of heat energy. What would be the value of heat liberated per mole of C6H6(l) if the reaction occurs...
-
Given a database of the results of an election, find the number of seats won by each party. There are some rules to going about this: There are many constituencies in a state and many candidates who...
-
What tax treatment is given to participant accounts when Roth contributions are made to SEPa SIMPLE IRAs? a . Participants must include the contributions in their income b . Earnings on the...
-
green metrics: specific objective measurements of a firm's social and financial impact True False
-
Segmented pricing is common. Most people understand and accept situations where children or seniors get a break on meal prices or tickets to the movies. But what do you say to an entire country that...
-
The cash flow statement reveals: Select one: a. Uses of funds only b. Sources and uses of cash c. Sources of funds only d. Loan sources only
-
Discuss the current tax law for determining whether a company is a resident of Australia for tax purposes. In respect of residency tests, compare the Australian tax law to the tax law in one other...
-
Federal Tax Law effect on Individual Tax Payer There are two objectives 1. Analyze tax laws. 2. How does tax law effect the individual tax payer?
-
1. Use the following project info to answer the following questions. Times are in weeks, costs in hundreds. a. What is project duration and cost and critical path? (Note that there are no indirect...
-
Interest Compounded Annually. When P dollars is invested at interest rate i, compounded annually, for t years, the investment grows to A dollars, where A = P(1 + i) t . Trevor's parents deposit $7800...
-
You work for Brighten Enterprises, a Fortune 500 company with annual sales of more than $23 billion. Your company has been on the cutting edge in new product innovation. It has grown rapidly and has...
-
You are a plant manager at a manufacturing company. Relationship between your management team and factory workers is generally harmonious. You and the other managers have worked your way up through...
-
You are a marketing professional who is offered a promotion that would place you as the leader of a team developing a new recreational vehicle. This vehicle has a rough ride and few amenities but can...
-
What is the Standard Industrial Classification (SIC)? In what ways might such a classification system be useful? Can you think of any limitations or problems such a system might have over time?
-
1. In what ways did the defence industries respond to the ending of the Cold War? 2. Using an Internet search, find out how the defence and security industries have responded to the threat of...
-
Explain why the business objectives of owners and managers are likely to diverge. How might owners attempt to ensure that managers act in their interests and not in the managers own interests?
Study smarter with the SolutionInn App