Question: OBJECTIVE 1 cise 20.12 Reorder Point efer to Exercise 20.10. Assume the economic lot size for small casings is 120,000 and that of the large

 OBJECTIVE 1 cise 20.12 Reorder Point efer to Exercise 20.10. Assume

OBJECTIVE 1 cise 20.12 Reorder Point efer to Exercise 20.10. Assume the economic lot size for small casings is 120,000 and that of the large casings is 40,000. Morrison Manufacturing sells an average of 9,600 small casings per workday and an average of 3,200 large casings per workday. It takes Morrison two days to set up the equipment for small or large casings. Once set up, it takes three workdays to produce a batch of small casings and five days for large casings. There are 250 workdays available per year. Required: 1. What is the reorder point for small casings? Large casings? 2. Using the economic order batch size, is it possible for Morrison to produce the amount th . or can be sold of each cas pull-through system approach to inventory management? Explain. ing? Does scheduling have a role he

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