Question

Please solve A,B and C clearly

1. The Fine Crate Company uses 12,450 wooden slats a year, building wooden crates at a constant rate. The Fine Crate Company can produce 150 wooden slats a day when it sets up to produce wooden slats. The Fine Crate Company only sets up and produces wooden slates 5 times a year, and it always produces the same number of wooden slats each time it sets up production (in other words, a fixed batch size). The Fine Crate Company is open 365 days a year.

1. What is the run-time of one of the Fine Crate Company’s batches of wooden slats?
2. What run size is Fine Crate using when building wooden crates?
3. What is the most number of wooden slats that the Fine Crate Company would ever have in inventory, waiting to be used for wooden crates?

Answer 1

Economic Order Quantity is the number of unit that is added to the inventory which minimize the total inventory cost. It maintain a balance between ordering costs and carrying costs.

D: 12450 wooden slats year P= 150 wooden slate (day N = 5 times n= 365 days d = D 12 450 365 = 34.1 units/day a = 0 - 12450 = 2490 units a. Run time = 6 2490 150 = 16 6 days Answer b. Run size (9) = | 2490 units Answer

c. Imanc & (p-d) 2490 (150 - 3400) 1923.94 or [1924 units / 150 Answer