250 days a year and stays busy doing so but management feels they can add

250 days a year and stays busy doing so but

This preview shows page 38 - 44 out of 68 pages.

250 days a year and stays busy doing so but management feels they can add another flavor to their product line and increase their revenue. Which of the following statements is appropriate for this scenario? a) b)
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c) d) Question 7 2 / 2 points Use the information in Scenario D.1. How many production runs per year are needed if Jerry chooses to produce at his economic production lot size (ELS)? Scenario D.1 Jerry Allison is in charge of production for a small producer of plumbing supplies. The cricket model has an estimated annual demand of 12,000 units and can be produced at a production rate of 90 units per day. The company produces (and sells) the cricket 300 days per year. Setup cost to produce this model averages $22 and the item has a holding cost of $3 per unit per year. Fewer than or equal to 10 runs Greater than 10 runs but fewer than or equal to 20 runs Greater than 20 runs but fewer than or equal to 30 runs Greater than 30 runs Question 8 2 / 2 points In a noninstantaneous replenishment model, as the daily demand approaches 50% of the daily production rate: a)
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b) the length in days of a production run increases. c) the economic lot size increases. d) the time between production runs decreases. Question 9 2 / 2 points Use the information in Scenario D.2. What is the best order quantity? Scenario D.2 Kyle store sells K2 skis. The store makes a $200 profit per unit sold during the ski season, but it should take a $50 loss per unit if sold after the season is over. The following discrete probability distribution has been estimated for the season’s demand. Demand ( D ) Demand Probability 10 0.1 20 0.3 30 0.3 40 0.2 a) Fewer than or equal to 20 units b)
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c) d) Greater than 50 units Question 10 2 / 2 points Pencil supplier just introduced quantity discounts. The price schedule follows. Order Quantity Price per Unit 000–199 $4.00 200–399 $3.00 400 and more $2.00 XYZ store’s annual demand remains at 500 units and ordering cost at $10 per order. If annual holding cost is 10 percent of the pencils’ per-unit price, what order quantity should XYZ select to minimize all costs? a) Fewer than or equal to 150 units b) c)
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d) Greater than 399 units Question 11 2 / 2 points Use the information in Scenario D.1. If Jerry chooses to produce the batch size suggested by the economic production lot size (ELS) model, what is the annual cost? Scenario D.1 Jerry Allison is in charge of production for a small producer of plumbing supplies. The cricket model has an estimated annual demand of 12,000 units and can be produced at a production rate of 90 units per day. The company produces (and sells) the cricket 300 days per year. Setup cost to produce this model averages $22 and the item has a holding cost of $3 per unit per year. a) Less than or equal to $900 b) c) d) Greater than $1000 Question 12 2 / 2 points Use the information in Scenario D.1. What is the maximum inventory if Jerry chooses to produce at the economic production lot size (ELS)?
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Scenario D.1 Jerry Allison is in charge of production for a small producer of plumbing supplies.
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