Question

suppose that a company needs 1,500,000 items during a year and that preparation for each production run costs $900. suppose also that it costs $25 to produce each item and $3 per year to store an item. use the inventory cost model to find the number of items in each production run so that the total cost of production and storage ave minimized.

a) ? items/run

Answer #1

Suppose that a company needs 1,600,000 items during a year and
that preparation for each production run costs $500. Suppose also
that it costs $14 to produce each item and $4 per year to store an
item. Use the inventory cost model to find the number of items in
each production run so that the total costs of production and
storage are minimized.

A company needs 150,000 items per year. It costs the company
$720 to prepare a production run of these items and $14 to produce
each item. If it also costs the company $1.50 per year for each
item stored, find the number of items that should be produced in
each run so that total costs of production and storage are
minimized.
_______________items/run

A company needs 200,000 items per year. It costs the company
$960 to prepare a production run of these items and $15 to produce
each item. If it also costs the company $1.50 per year for each
item stored, find the number of items that should be produced in
each run so that total costs of production and storage are
minimized.

A company needs 450,000 items per year. It costs the company
$2,160 to prepare a production run of these items and $16 to
produce each item. If it also costs the company $1.50 per year for
each item stored, find the number of items that should be produced
in each run so that total costs of production and storage are
minimized. (Answer must be an exact number)

A company produces and sells 6,400 recliners each year. Each
production run has a fixed cost of $400 and an additional cost of
$35 per recliner. To store a recliner for a full year costs $8.
What is the optimal number of recliners the company should make
during each production run? Do not include units with your
answer.

A company produces and sells 2,500 sets of silverware each year.
Each production run has a fixed cost of $200 and an additional cost
of $5 per set of silverware. To store a set for a full year costs
$4. What is the optimal number of production runs the company
should make each year? Do not include units with your answer.

Please answer the following question based on the
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So how many...

Bruno Fruscalzo decided to start a small production facility in
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Dawson Company produces and sells 80,000 boxes of specialty
foods each year. Each box contains the same assortment of food. The
company has computed the following annual? costs:
Cost Item
Total Costs
Variable production costs
$400,000
Fixed production costs
480,000
Variable selling costs
320,000
Fixed selling and administrative costs
200,000
Total costs
$1,400,000
DawsonDawson normally charges $ 25 per box. A new distributor
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Randy and Rafi’s multimedia company anticipates that there will
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Assume that each production starts once the previous storage...

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