Carl's Custom Cans produces small containers which are purchased by candy and snack food producers. The...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Carl's Custom Cans produces small containers which are purchased by candy and snack food producers. The production facility operates 250 days per year and has annual demand of 8,500 units for one of its custom cans. They can produce up to 110 of these cans each day. It costs $53.73 to set up one of their production lines to run this can. (Carl pays $12 per hour for setup labor.) The cost of each can is $2.55 and annual holding costs are $2.30 per can. What is the optimal size of the production run for this can? (Display your answer to the nearest whole number). given your answer to the previous question, how many production runs will be required each year in order to meet the annual demand? (Round your answer UP to the next whole number.) Suppose the customer for this custom can wants to purchase in quantities of 500 units. What is the required setup cost to make this order quantity an optimal production run quantity for Carl's Custom Cans? (Display your answer to two decimal places.) Based on your answer to the previous question (reduced setup cost), how long (in minutes) should it take to set up this production line? (Display your answer to the nearest whole number.) Carl's Custom Cans produces small containers which are purchased by candy and snack food producers. The production facility operates 250 days per year and has annual demand of 8,500 units for one of its custom cans. They can produce up to 110 of these cans each day. It costs $53.73 to set up one of their production lines to run this can. (Carl pays $12 per hour for setup labor.) The cost of each can is $2.55 and annual holding costs are $2.30 per can. What is the optimal size of the production run for this can? (Display your answer to the nearest whole number). given your answer to the previous question, how many production runs will be required each year in order to meet the annual demand? (Round your answer UP to the next whole number.) Suppose the customer for this custom can wants to purchase in quantities of 500 units. What is the required setup cost to make this order quantity an optimal production run quantity for Carl's Custom Cans? (Display your answer to two decimal places.) Based on your answer to the previous question (reduced setup cost), how long (in minutes) should it take to set up this production line? (Display your answer to the nearest whole number.)
Expert Answer:
Answer rating: 100% (QA)
Solution To find the optimal size of the production run we can use the economic order quantity EOQ f... View the full answer
Related Book For
Quantitative Methods for Business
ISBN: 978-0840062345
12th edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
Posted Date:
Students also viewed these general management questions
-
In marketing, response modeling is a method for identifying customers most likely to respond to an advertisement. Suppose that in past campaigns 31.6% of customers identified as likely respondents...
-
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...
-
Damages require one person to pay money as compensation for another persons loss. Damages are therefore a private matter. Since the Charter is part of public law, damages cannot be awarded in...
-
What is the usual method of mortgage foreclosure?
-
External auditors usually calculate inventory turnover (cost of goods sold for the year divided by average inventory) and use the ratio as a broad indication of inventory age, obsolescence, or...
-
Diet Cola and Weight Gain in Humans A study found that American senior citizens who report drinking diet soda regularly experience a greater increase in weight and waist circumference than those who...
-
A firm produces a perishable food product at a cost of $10 per case. The product sells for $15 per case. For planning purposes, the company is considering possible demands of 100, 200, and 300 cases....
-
1. You need to modify an existing VHD file. Q: How do you proceed? 2. A web-based site is needed by all users on the company's network in order to perform research on the company's competitors. After...
-
The Dapper-Dons Partnership was formed ten years ago as a general partnership to custom tailor men's clothing. Dapper-Dons is located at 123 Flamingo Drive in City, ST, 54321. Bob Dapper manages the...
-
The following information describes the value Lori Landlord places on having her five apartment houses repainted. She values the repainting of each apartment house at a different amount depending on...
-
True or False. A price ceiling will result in a shortage only if the ceiling price is greater than the equilibrium price.
-
A franchisee is usually required to pay the franchiser an ongoing fee. True or False
-
Compare and contrast the Bretton Woods system of exchange rates with that of the gold standard. What caused the collapse of the gold standard? What caused the demise of the Bretton Woods system?
-
last word What is the purpose of charging different prices to different groups of customers? Supplement the two broad examples in the Last Word with two additional examples of your own.
-
Give an example from your own life of a situation where you or someone you know uses a precommitment to overcome a selfcontrol problem. Describe why the precommitment is useful and what it...
-
The chemical equation for the reaction of baking soda (sodium bicarbonate, NaHCO 3 ) and vinegar (acetic acid, CH 3 COOH) may be written as two steps. Fill in the missing information for the chemical...
-
Suppose the S&P 500 futures price is 1000, = 30%, r = 5%, = 5%, T = 1, and n = 3. a. What are the prices of European calls and puts for K = $1000? Why do you find the prices to be equal? b. What...
-
A retail outlet sells holiday candy for $10 per bag. The cost of the product is $8 per bag. All units not sold during the selling season prior to the holiday are sold for half the retail price in a...
-
Develop your own worksheet for the Butler inventory simulation model shown in Figure 16.10. Suppose that management prefers not to charge for loss of goodwill. Run the Butler inventory simulation...
-
All-Star Bat Manufacturing, Inc., supplies baseball bats to major and minor league baseball teams. After an initial order in January, demand over the six-month baseball season is approximately...
-
This exercise considers the data described in the Section 13.2.2 ratemaking classification example using data in Table 13.3 Table 13.3 . a. Fit a gamma regression model using a log-link function with...
-
This exercise considers data from the Medical Expenditure Panel Survey (MEPS) described in Exercise 1.1 and Section 11.4. Our dependent variable consists of the number of outpatient (COUNTOP) visits....
-
Verify that the Tweedie distribution is a member of the linear exponential family of distributions by checking equation (13.9). In particular, provide an expression for \(S(y, \phi)\) (note that...
Study smarter with the SolutionInn App