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retownes retownes
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6 years ago
A toy manufacturer makes its own wind-up motors, which are then put into its toys. While the toy manufacturing process is continuous, the motors are intermittent flow. Data on the manufacture of the motors appears below.
Annual demand (D) = 50,000 units   Daily subassembly production rate = 1,000
Setup cost (S) = $85 per batch   Daily subassembly usage rate = 200
Carrying cost = $.20 per unit per year

(a) To minimize cost, how large should each batch of subassemblies be?
(b) Approximately how many days are required to produce a batch?
(c) How long is a complete cycle?
(d) What is the average inventory for this problem?
(e) What is the total annual inventory cost (holding plus setup) of the optimal behavior in this problem?
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Operations Management

Operations Management


Edition: 10th
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AlmeyricAlmeyric
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6 years ago
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retownes Author
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6 years ago
Good timing, thanks!
hannahspillett
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Yesterday
Thanks
erimis
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2 hours ago
This site is awesome
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