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kipiarov [429]
3 years ago
5

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

This 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%.
a. Determine the optimal production batch size for the supplier.
b. Toyota wants the supplier to reduce its batch size by a factor of 2; that is, if the supplier currently produces Q parts per batch, Toyota would like them to produce Q/2 parts per batch. What should the supplier do in order to make this amount optimal for him? (In other words, what setup time creates a scenario in which the optimal batch size drops to 1/2 of its current level?)
Business
1 answer:
Pavlova-9 [17]3 years ago
8 0

The EOQ is 980 units and should reduce the fixed ordering cost to an amount of $62.50.

<u>Explanation:</u>

a) Annual demand=Qty per mth multiply with 12 = 1000 multiply with 12 =12000

Annual demand in USD, A= 12000 multiply with USD 100 (cost of each part) = USD 1200000

Preparation cost, P= 4 hrs changeover time multiply with USD 250 per hr = USD 1000

Annual holding cost, I = 25% = 0.25

EOQ in USD= Root over (2 multiply with A multiply with P divide by I ) = USD 9.79 multiply with 10000 = USD 98000

EOQ in nos. = USD 98000 divide by USD 100 (cos of each part) = 980 units

b)  Q = 980 divide by 4 = 245

In this case, annual carryring cost, C = EOQ 980 by 4 multiply with 0.5 multiply with Unit cost USD 100 multiply with 0.25 = USD 3062.50

Annual demand, D = 1000 per month multiply with 12 = 12000

Ordering cost = C multiply with 245 / D = USD 62.50

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Teams comprised of people from various disciplines are a primary component of ________, which involves product and process desig
nikitadnepr [17]

The answer in the space provided is concurrent engineering. It is because concurrent engineering is the one responsible of having to lead improvement in regards of the organization or company’s reduced cost or its productivity in which is helpful and could brought it for their own benefit.

8 0
3 years ago
A company's board of directors votes to declare a cash dividend of $1.10 per share of common stock. The company has 22,000 share
lutik1710 [3]

Answer:

$18,150

Explanation:

Calculation for the total amount of the cash dividend

Since A company's board of directors  has votes to declare the  cash dividend of $1.10 per share of common stock, this means we have to multiply the cash dividend per  share of common stock by the shares outstanding which is $16,500

Using this formula

Cash dividend per share of common stock * Shares outstanding

Let Plug in the formula

$1.10*16,500

=$18,150

Therefore the total amount of the cash dividend  will be $18,150

5 0
3 years ago
A company is formulating its marketing expense budget for the last quarter of the year. Sales in units for the third quarter amo
iren2701 [21]

Answer:

a. $29,496

b. $21,996

Explanation:

a. The Computation of budgeted marketing expense for the fourth quarter is shown below:-

Sales units                                                            2,640

(2400 × 110%)

Variable marketing expenses per unit sold $0.15

Total Variable marketing expenses                 $396

Fixed Marketing expenses                                    $18,000

Salaries ($6,000 × 3)

Depreciation ($2,500 × 3)                                      $7,500

Insurance ($1,200 × 3)                                            $3,600

Total Fixed marketing expenses                            $29,100

Budgeted marketing expense

for the fourth quarter                                           $29,496

b. Estimated cash payment for marketing expenses for the fourth quarter = Budgeted marketing expense for the fourth quarter - Depreciation

= $29,496 - $$7500

= $21,996

7 0
3 years ago
Sheffield Company reports the following operating results for the month of August: sales $315,000 (units 5,000); variable costs
frosja888 [35]

Answer:

1. the net income if selling price increased by 10% would be = $59,700

Net income increased by $31,500.

Explanation:

Given,

Sales = $315,000

Variable costs = $216,000

Fixed costs = $70,800

No. of units = 5,000

                                   Sheffield Company

             Income Statement (Contribution Margin Format)

Particulars                                                $

Sales                                                    315,000

Less: Variable expenses                  <u> (216,000)</u>

Contribution Margin                             99,000

Less: Fixed costs                         <u>        (70,800)</u>

Net Income                                          28,200

Since the selling price increased by 10% and no change in variable costs and volume, therefore, we can get -

<em>Sales = $315,000 x (1 + 0.10) = $346,500</em>

In this case, the net income will be as follows:

Sales                          = $346,500

<u>Less: Variable Costs =  (216,000)</u>

Contribution Margin  =   130,500

<u>Less: Fixed Costs      =   (70,800)</u>

Net Income                =   59,700

5 0
3 years ago
The code that forty-nine states have adopted to interpret and enforce contract law is the _____.
grin007 [14]
<span>The code that forty-nine states have adopted to interpret and enforce contract law is the "Uniform Commercial Code".


</span>The Uniform Commercial Code was published in 1952 and it contains many uniform acts. The nine articles of the UCC is an arrangement of laws overseeing the offer of products, leases of merchandise, debatable instruments, bank stores, support exchanges, letters of credit, mass deals, distribution center receipts, bills of replenishing, investment securities and secured exchanges. As the national economy developed at the turn of the twentieth century, a need to direct business exchanges consistently became important. With the reception of the UCC, organizations and in addition people are secured.
3 0
3 years ago
Read 2 more answers
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