1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
vladimir2022 [97]
3 years ago
12

A producer of electronic parts wants to take account of both production rate and demand rate in deciding on its lot sizes. A par

ticular $50 part can be produced at a rate of 100 units per day, and the demand rate is 20 units per day. Assuming there are 300 days in a year. The firm uses a carrying charge of 24% a year, and the setup cost is $200 each time the part is produced.
Required:
a. What lot size should be produced?b. If the production rate is ignored, what would the lot size be? How much does this smaller lot size cost the firm on an annual basis?
Business
1 answer:
Len [333]3 years ago
8 0

Answer:

a) Optimal lot size = 1,118.03

b) Annual total cost = $46.51

Explanation:

As per the data given in the question,

a) Daily holding cost = $50 × 24% ÷ 300 = $0.04

Optimal lot size = Sqrt (2 × Demand rate × Setup cost ÷ (Daily holding cost × ( 1 - Demand rate ÷ Production cost)))

= Sqrt(2 × 100 × $200 ÷ ($0.04 × (1 - 20 ÷ 100)))

= $1,118.03

b) If the production rate is ignored then optimal lot size :

= Sqrt (2 × 20 × $200 ÷ 1)

= 89.44

Annual total cost = Setup cost+ holding cost

= (Demand rate ÷ Optimal lot size) × Setup cost + (Optimal lot size ÷ 2) × holding cost

= (20 ÷ 89.44) × $200 + 89.44 ÷ 2 ×$0.04

= $44.72 +  $1.79

= $46.51

You might be interested in
The death of a promisor in a personal services contract discharges an agreement. However, if a promisor dies, other types of con
IRINA_888 [86]

Answer:

The interpretation of the discussion is characterized throughout the interpretation section elsewhere here.

Explanation:

  • The reinstatement including its service agreement shall be signed throughout the event of termination of each of the wings of the party in such a way that perhaps the replacement does not instantaneously embrace plausible transformations depending on the temperature acknowledged either by promiser.
  • Unless the particular responsibilities set out during this Agreement aren't adequately accomplished as well as throughout the lack of mention including its new contractual obligations.
  • The same would be true whether it is approximately necessary to manage the service agreement when the world collapses. After that, Suo-moto seems to be the cancelation including its service agreement. It would have the natural world of consciousness of leases. Because if the real estate of the dead person is expected to take responsibility again for contractual agreement through by the dearly departed.
5 0
2 years ago
Which of the following is an example of representative money?
Leto [7]
"Representative money<span> is an item such as a token or piece of paper that has no intrinsic value but can be exchanged on demand for a commodity that does have intrinsic value, such as gold, silver, copper, and even tobacco" Google.

</span>C) A check. 

5 0
3 years ago
Read 2 more answers
Fran wants to hire a diverse group of capable people to work at her brand new fitness studios. Unfortunately, many of the applic
Strike441 [17]

Answer:

use a combination of tests measuring both cognitive abilities and non-cognitive traits such as emotional intelligence and personality

Explanation:

In the given scenario many of the applicants Fran perceives as having good emotional intelligence and agreeable personalities (a plus for a fitness studio), do not score well on the cognitive ability test.

Since she wants people that have non-cognitive traits such as emotional intelligence and personality, and also good cognitive abilities.

She will need to use a combination of tests measuring both cognitive abilities and non-cognitive.

8 0
3 years ago
Consider the following scenario to answer the following questions: Kukla makes tables, with an opportunity cost of 3 rugs per ev
mote1985 [20]

Answer:

E

Explanation:

In this question, we are told to state what the reaction of Koka and Zola will be;

Kukla and Zola both like the proposal. As according to the given opportunity cost for Kukla (3 rugs per every 4 tables) she can get 1.5 rugs for 2 tables .But with the offer made now she can get 2 rugs for giving 2 tables.

Given the opportunity cost for Zola ( 2 tables per every 3 rugs ) she must give 3 rugs for getting 2 tables. But with the offer made she can now get 2 tables for giving away only 2 rugs .

So both Kukla and Zola are happy with the offer.

3 0
3 years ago
Read 2 more answers
Integrated marketing communications is a strategic approach designed to achieve the objectives of a marketing campaign using the
MakcuM [25]
<h2>The given statement is true.</h2>

Explanation:

  • In marketing this is a holistic approach for communicating product promotion to the customer
  • Available in both offline and online
  • Used for creating seamless customer experience
  • Applicable for One-to-one-marketing, direct marketing and mass marketing
  • It consists of advertising, public relation sales promotion, etc
  • This is done to attract customer and bring more business
  • This has an ability to reach many customers through variety of channel
  • It can attract all types of customers
4 0
3 years ago
Other questions:
  • Monica owns an equestrian clothing store. After many customers complained that her clothing only fit petite riders, she decided
    8·1 answer
  • A correct statement concerning a real estate limited partnership is that: (A) The ordinary and necessary expenses of the general
    15·1 answer
  • When a lender charges interest, it is known as:
    13·2 answers
  • Kaelyn's mother, Judy, looks after Kaelyn's four-year-old twins so Kaelyn can go to work (she drops off and picks up the twins f
    10·1 answer
  • The Ryan Express, provider of tax services, starts operations on 1/1/17. Now that the company has been in business for more than
    10·1 answer
  • Pro Clean Company, a manufacturer of hand sanitizers, intends to produce 40,000 units in the third quarter and 35,000 units in t
    9·1 answer
  • The following balances were taken from the books of Splish Corp. on December 31, 2017.Interest revenue $87,550 Accumulated depre
    15·1 answer
  • When evaluating services, consumers generally compare their expectations prior to the service to the outcome once the service is
    8·1 answer
  • The managers at Alpha Corp. are closely observing trends in the industry. They are trying to identify factors that might have a
    5·1 answer
  • The Beckham Company has the following information about their activity cost pools: Activity Cost Pools Total Overhead Cost Total
    14·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!