Inventory Model

#1 Cooper Automotive Products manufactures components used in the automotive industry. The company purchases parts for use in its manufacturing operation from a variety of different suppliers. One supplier provides a part where the assumptions of the EOQ model are realistic. The annual demand is 5000 units, the ordering cost is $85 per order, and the annual holding cost rate is 20%. a. Determine the economic order quantity if the cost of the part is $25 per unit. b. Determine the reorder point if the lead time for an order is 12 days. Assume 250 days of operation per year. c. Determine the reorder point if the lead time for the part is seven weeks (35 days). d. Determine the reorde... click for more

Productivity (Labor, Total) Calculations

1. A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Labor cost was $10/hour and machine cost was $40/hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10/hour while output increased by four carts per hour. a. Compute labor productivity under each system. Use carts per worker hour as the measure of labor productivity. b. Compute the total productivity unde... click for more

Problem: Compute Labor/total productivity level change for Shopping Cart manufacturing Company adopting new system over the prevailing one. Solution: Compare Cart/labour & Cart/$ productivity for prevailing & new system & view the result

1. A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Labor cost was $10/hour and machine cost was $40/hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10/hour while output increased by four carts per hour. a. Compute labor productivity under each system. Use carts per worker hour as the measure of labor productivity. b. Compute the total productivity unde... click for more

Operational Optimization

1. A company that makes shopping carts for supermarkets and other stores recently purchased some new equipment that reduces the labor content of the jobs needed to produce the shopping carts. Prior to buying the new equipment, the company used five workers, who produced an average of 80 carts per hour. Labor cost was $10/hour and machine cost was $40/hour. With the new equipment, it was possible to transfer one of the workers to another department, and equipment cost increased by $10/hour while output increased by four carts per hour. a. Compute labor productivity under each system. Use carts per worker hour as the measure of labor productivity. b. Compute the total productivity unde... click for more

Cost Blend - Excel Solver

***Please see the attached file for details*** Newport manufactures coffee by blending 3 types of coffee beans. The cost per pound and the number of pounds used per hour are listed below. The coffees individually meet the following ratings: Bean Cost/lb 1 0.95 2 1.35 3 0.89 The Newport blend requires an aroma rating of at least 75 and a taste rating of at least 80. The blended ratings are a weighted average of the attributes of those for the three bean types. a. What is the minimum cost blend that will produce 1000 pounds of blend and meet the required ratings? b. What are the aroma and taste ratings for this blend?