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Unformatted text preview: e optimal solution is to set up the facility to order cameras in batches of 2aK 2 · 1200 · 35 Q = = = 91.6 h 10 once every t = Q /a = 91.6 = 0.076 years ≈ 4 weeks 1200
Page 8 IOE 202: Operations Modeling, Fall 2009 We should place an order when the inventory level is ≈ 23 cameras Space Example: Manufacturing speakers for TV sets A TV manufacturing company produces its own speakers, which are then used in the production of its TV sets. The TV sets are produced on a continuous production line at a rate of 8,000 per month, and each set needs one speaker. The speakers are produced in batches, because relatively large quantities can be produced in a short time. Therefore, speakers are placed into inventory until they are needed for assembly into TV sets. The company is interested in determining when to produce a batch of speakers and how many to produce in each batch. Several costs must be considered in making the above decision: Each time a batch of speakers is produced, a setup cost of $12,000 is incurred The unit production cost of a single speaker (excluding...
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This note was uploaded on 03/17/2010 for the course IOE 202 taught by Professor Marinaepelman during the Fall '09 term at University of Michigan-Dearborn.
- Fall '09