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Eddi Din [679]
3 years ago
7

A supplier to Ford stamps out parts using a press. Changing a part type requires the supplier to change the die on the press. Th

is changeover currently takes four hours. The supplier estimates that each hour spent on the changeover costs $250. Demand for parts is 1,000 per month. Each part costs the supplier $100, and the supplier incurs an annual holding cost of 25%.
Required:
A) Determine the optimal production batch size for the supplier.
Business
1 answer:
Shtirlitz [24]3 years ago
6 0

Answer:

The optimal production batch size for the supplier is 980 units.

Explanation:

In order to calcuate the optimal production batch size for the supplier we have to use the following formula:

optimal production batch size= \sqrt(<u>2×Annual Demand×setup cost)</u>

                                                                 Holding Cost

optimal production batch size=\sqrt (<u>2×(1,000×12)×($250×4)</u>

                                                                  ($100×25%)

optimal production batch size=\sqrt(<u>2×12,000×$1,000)</u>

                                                               $25

optimal production batch size= 980 units

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kotegsom [21]

Market Price =$36.09,is one share of this stock worth at a discount rate of 13.3 percent.

<h3>Common stock: What does that mean?</h3>

A security that symbolizes ownership in a firm is called common stock. Common stock owners choose the executive board and cast ballots for corporate rules. This kind of stock ownership frequently offers better long-term rates of return. Common stock is not subject to either assets or liabilities.

<h3>How are shares & common stock different from one another?</h3>

Definition: The term "stock" refers to the holder's interest in one or more businesses. A single share of interest in a firm is referred to as a "share" in contrast. For instance, if X has stock investments, X may have a collection of shares from various companies.

<h3>Briefing:</h3>

Market price = dividends per share

P0 = $4.80/.133

P0 = $36.09

Market Price =$36.09

To know more about common stock visit:

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5 0
1 year ago
To conduct an experiment, a movie theater increased movie ticket prices from $9 to $10 and measured the change in ticket sales.
AleksandrR [38]

Answer:

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7 0
3 years ago
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Anna11 [10]
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8 0
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This also represented in the figure given below.

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