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Question
Scenario 9.4
The Mwongola Company is a small manufacturing company that uses gear assemblies to produce four different models of mountain bikes. One of these gear assemblies, the "Smooth Shifter", is used for the two most expensive of Burdell's four models, and has an estimated annual demand of 300 units. Burdell estimates the cost to place an order is $40, and the holding cost for each assembly is $60 per year. The company operates 250 days per year.
Use the information in Scenario 9.4. The purchasing manager decides that, in order to save purchasing time, orders for the Smooth Shifter will be placed once a month, or twelve times per year. How much does this approach cost Mwongola in additional annual holding and ordering costs (instead of Mwongola ordering using the EOQ quantity)?
A) more than $500
B) more than $200 but less than or equal to $500
C) more than $50 but less than or equal to $200
D) less than or equal to $50
Answer
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Related questions
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
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Q:
Construct a 3-sigma and R-chart for the length in centimeters of a part from the following table. Sample #
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Observation 2
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Observation 4 1
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0.499
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0.496
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Q:
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SALES PRICE
LABOR
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1 hr
$2 Flat screen TV
$250
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$1 $200 cash
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Q:
Consider this list of jobs that have just arrived and are ready for processing. They all require processing first on machine 1 and then on machine 2. Both machines are now idle. Develop a schedule that minimizes makespan and calculate this makespan time. Now assume that each job can be split into two jobs, each having half the duration on both machine 1 and machine 2. Using the original sequence that minimized average flow time, calculate the flow times for all split jobs What is the effect of this new schedule on the average flow time for these split jobs? Job
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Machine 2 1
14
6 2
11
12 3
16
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12
8 5
22
9 6
13
15 7
10
12 8
8
13