Question: Someone answer this question for me, however the answer was wrong could you please answer this question correctly, Thank you. JL.53 Bob's Bumpers has a
Someone answer this question for me, however the answer was wrong could you please answer this question correctly, Thank you.
JL.53 Bob's Bumpers has a repetitive manufacturing facility in Kentucky that makes automobile bumpers and other auto body parts. The facility operates 280 days per year and has annual demand of 64,000 bumpers. They can produce up to 305 bumpers each day. It costs $68 to set up the production line to produce bumpers. The cost of each bumper is $94 and annual holding costs are $33 per unit. Setup labor cost is $27 per hour. Suppose the customer (an auto manufacturer) wants to purchase in lots of 520 and that Bob's Bumpers is able to reduce setup costs to the point where 520 is now the optimal production run quantity. How much will they save in annual holding costs with this new lower production quantity? (Display your answer to two decimal places.) How much will they save in annual setup costs with this new lower production quantity? (Display your answer to two decimal places.)
Suppose the customer (an auto manufacturer) wants to purchase in lots of 520 and that Bob's Bumpers is able to reduce setup costs to the point where 520 is now the optimal production run quantity. How much will they save in annual holding costs with this new lower production quantity? (Display your answer to two decimal places.)
How much will they save in annual setup costs with this new lower production quantity? (Display your answer to two decimal places.)
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
