1.
A toy manufacturer uses 48,000 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 800 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1 per wheel a year. Set up cost for a production run of wheels is $45. The firm operates 240 days per year. Determine the following: 1. Optimal run size -2400 2. Minimum total annual cost for carrying and set-up ….$1,800 3. Cycle time for the optimal run size……12days 4. Run time…….3days
2.
The maintenance department of a large hospital uses about 816 cases of liquid cleanser annually. Ordering costs are $12, carrying costs are $4 per case a year, and the new price schedule indicates that orders of less than 50 cases will cost $20 per case, 50 to 79 cases will cost $18 per case, 80 to 99 cases will cost $17 per case, and large orders (100+) will cost $16 per case. Determine the optimal order quantity and the total cost. (please note there was an error in the question)
Optimal order quantity…….100. TC =$13,354
(3)
Open Campus one of the UWI’s four campuses promotes a wide variety of executive- training courses for firms in the Mobay area. The Director believes that individually typed letters add a personal touch to marketing. To prepare letters for mailing, she conducts a time study of her secretaries. On the basis of the observations shown in the following table, she wishes to develop a time standard for the whole job. The campus uses a total allowance factor of 12%. The Director decides to delete all unusual observations from the time study. What is the time standard? Job Element | | Observed Time (minutes) | | | Perf. Rating | | | | | | | Typing letter | 2.5 | 3.5 | 2.8 | 2.1 | 2.6 | 3.3 | 85% | Typing envelope | 0.8 | 0.8 | 0.6 | 0.8 | 3.1a | 0.7 | 100% | Stuffing envelope