Marketing is requesting a 1,000,000 pcs/year volume and the life expectancy for this part is 5 years.
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Question:
Marketing is requesting a 1,000,000 pcs/year volume and the life expectancy for this part is 5 years. Estimated part weight is 1.750 kg.
- What will be the weekly required production rate to meet the yearly volume?
- How many cavities are recommended for the production yearly volume required?
- Based on your previous answer, how many normal hours and overtime hours will be required to meet the weekly production schedule.
- Determine the piece price the first year considering the initial investment amortized on the first year of production and a 25 % gross profit.
Useful data:
Mr. “O” reported :$100,000 USD development cost.
Mr. “CASIO” reported: MOLD: $350,000 USD for 1 Cav.
& $550,000 for 2 cav. mold
Checking fixture: $60,000 USD
Secondary Equipment :$25,000 USD
Mr. “NICASIO” reported:
Cycle time : 50 seconds
Machine utilization cost : 3000 USD/hour
Material Cost: $4.50 USD/LB.
Labor Cost Normal time: 20 USD/hour
Labor Cost overtime : 40 USD/hour
SG&A cost : 20 USD/hour
WORK HOURS: NORMAL TIME: 3 SHIFTS OF 8 HOURS
WEEKENDS ARE OVERTIME
52 WEEKS PER YEAR.
Related Book For
College Mathematics for Business Economics Life Sciences and Social Sciences
ISBN: 978-0321614001
12th edition
Authors: Raymond A. Barnett, Michael R. Ziegler, Karl E. Byleen
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