Question: solve manually asap please Ross's machine shop uses 3,500 brackets during the year, and the usage is relatively constant throughout the year. These brackets are

solve manually asap please

Ross's machine shop uses 3,500 brackets during the year, and the usage is relatively constant throughout the year. These brackets are purchased from a supplier for $18 each. The lead time is 2 days. The holding cost is per bracket is $1.80 and the ordering cost per order is $18.75. The shop operates 250 working days per year (5 days per week times 50 weeks). Now, Ross is considering the making of the brackets in the shop instead of buying them for the supplier. He has determined the setup cost would be $35. He estimates that the shop can bulld 50 brackets per day once the machine is set to run production. He estimates that the cost of producing each bracket is $15.80. The holding cost is 10% of the bracket production cost, or $1.58. D = 3,500 units; Ch - 10% of $15.80 - $1.58; C. - $35 Be sure to round your questions to 2 decimal places Questions: 1. What is the daily demand rate? 2. What is the optimal production quantity? 3. How long will it take to produce the optimal production quantity? 4. What would be the maximum inventory level and average inventory level? 5. What is the annual holding cost? 6. How many production runs would there be each year? 7. What would be the annual setup cost

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!

Consider the following example. Russell Hobbs's machine shop uses 1.200 brackets during a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier...

Rosss machine shop uses 2,500 brackets during the year, and the usage is relatively constant throughout the year. These brackets are purchased from a supplier for $15 each. The lead time is 2 days....

Rosss machine shop uses 3,500 brackets during the year, and the usage is relatively constant throughout the year. These brackets are purchased from a supplier for $18 each. The lead time is 2 days....

Question 2: Ross White's machine shop uses 2,500 brackets during a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15...

Johns machine shop uses 5,000 brackets during the year, and the usage is relatively constant throughout the year. These brackets are purchased from a supplier for $15 each. The lead time is 2 days....

Question 3: Ross White's machine shop uses 2,500 brackets during a year, and this usage is relatively constant throughout the year. These brackets are purchased from a supplier 100 miles away for $15...

what are the answers for q1-q7? Ross's machine shop uses 3,500 brackets during the year, and the usage is relatively constant throughout the year. These brackets are purchased from a supplier for $18...

to you! Question 3 10 po Ross's machine shop uses 3,500 brackets during the year, and the usage is relatively constant throughout the year. These brackets are purchased from a supplier for $18 each....

Ross's machine shop uses 2,500 brackets during the year, and the usage is relatively constant throughout the year. These brackets are purchased from a supplier for $15 each. The lead time is 2 days....

Why is the relationship between an investment banker and a firm selling securities somewhat adversarial?

A worker views leisure and income as goods and has an opportunity to work at an hourly wage of $ 15 per hour. a. Illustrate the workers opportunity set in a given 24- hour period. b. Suppose the...

Starfish Seafood Processing Company has just signed a seafood export contract to the EU market. Starfish needs a specialized freezing equipment priced at $ 2 0 , 0 0 0 with a useful life of 5 years,...

Hugo decides to buy his Christmas gifts on Black Friday. To simplify his life, he is giving his 10 closest friends scarves for Christmas and everyone else Christmas cards. Hugo is willing to pay up...