Business, 09.04.2020 16:22 netflixacc0107
Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of 6,800 copies. The cost of one copy of the book is $14. The holding cost is based on an 19% annual rate, and production setup costs are $165 per setup. The equipment on which the book is produced has an annual production volume of 22,500 copies. Wilson has 250 working days per year, and the lead time for a production run is 17 days. Use the production lot size model to compute the following values:
a. Minimum cost production lot size
b. Number of production runs per year
c. Cycle time
d. Length of a production run
e. Maximum inventory
f. Total annual cost
g. Reorder point
Answers: 3
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