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Lab Work

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Submitted By chickman
Words 560
Pages 3
Lab Problems 3,9,10,13,16

3a. Determine the economic order quantity. an average of' 1215bags a year--------Dcost of $10 per order-----------------SAnnual carrying costs are $75 per bag.-------HQ= SQAURE ROOT OF 2DS/H= SQAURE ROOT OF 2x 1215 x 10 /75= 18 BAGS

b. What is the average number of bags on hand? Q/2= 18 BAGS /2= 9 BAGS

c. How many orders per year will there be? D/Q= 1215bags /18 BAGS/ORDER=67.5 ORDERS

d. Compute the total cost of ordering and carrying flour. TC=Q/2H + D/Q X S = 18/2 x75 + 1215bags /18 X 10 = 675 +675 =13 00 DOLLARS

e. If holding costs were to increase by $9 per year, how much would that affect the minimum total annual cost?

The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find

p = 5,000 hotdogs/day

D= 250/day x 300 days/yr. = 75,000 hotdogs/yr. u = 250 hotdogs/day
300 days per year
S = $66
H = $.45/hotdog per yr.
a.The optimal run size.
OLE-object

b.The number of runs per year.
D/Qo = 75,000/4,812 = 15.59, or about 16 runs/yr.

c.The length (in days) of a run. un length: Qo/p = 4,812/5,000 = .96 days, or approximately 1 day

10. A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage and handling costs are $5 per ton a year. The firm operates 200 days a year. (Note: 1 ton = 2,000 pounds.)
a.How many bags per run are optimal?
OLE-object
b.What would the average inventory be for this lot size?
OLE-object
Average is OLE-objecttons [approx. 3,098 bags]
c.Determine the approximate length of a

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