Problem 136
A produce distributor uses 780 packing crates a month, which it purchases at a cost of $8 each. The manager has assigned an annual carrying cost of 40 percent of the purchase price per crate. Ordering costs are $28. Currently the manager orders once a month.
How much could the firm save annually in ordering and carrying costs by using the EOQ? (Round intermediate calculations and final answer to 2 decimal places. Omit the “$” sign in your response.)
Savings $ per year
Problem 139
The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 6,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 280 per day. The cost to prepare the equipment for producing hot dogs is $68. Annual holding costs are 48 cents per hot dog. The factory operates 298 days a year.
a. Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Optimal run size
b. Find the number of runs per year. (Round your answer to the nearest whole number.)
Number of runs
c. Find the length (in days) of a run. (Round your answer to the nearest whole number.)
Run length (in days)
Problem 1312
A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at the rate of 830 per day. Hair dryers are assembled daily, 248 days a year, at a rate of 315 per day. Because of the disparity between the production and usage rates, the heating elements are periodically produced in batches of 2,300 units.
a. Approximately how many batches of heating elements are produced annually? (Round your answer to 2 decimal places.)
Number of batches
b. If production on a batch begins when there is no inventory of heating elements on hand, how much inventory will be on hand 4 days later?
Number of inventory
c.What is the average inventory of elements, assuming each production cycle begins when there are none on hand? (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Average inventory
d. The same equipment that is used to make the heating elements could also be used to make a component for another of the firm’s products. That job would require 6 days, including setup. Setup time for making a batch of the heating elements is a half day. Is there enough time to do this job between production of batches of heating elements?
Yes
No
Problem 147
Compute the takt time for a system where the total time per shift is 370 minutes, there is one shift, and workers are given 2 13minute breaks and 30 minutes for lunch. Daily demand is 353 units. (Round your answer to 2 decimal places.)
Takt time minutes per cycle
Problem 148
What cycle time would match capacity and demand if demand is 173 units a day, there are 2 shift(s) of 458 minutes each, and workers are given three 35 minute breaks during each shift, one of which is for lunch or dinner? (Round your answer to 2 decimal places.)
Cycle time minutes per cycle
Problem 151
A manager at Strateline Manufacturing must choose between two shipping alternatives: twoday freight and fiveday freight. Using fiveday freight would cost $210 less than using twoday freight. The primary consideration is holding cost, which is $10 per unit a year. 2,450 items are to be shipped.
Which alternative would you recommend? (Do not round your intermediate calculations.)
Fiveday freight
Twoday freight
Problem 152
Determine which shipping alternative would be most economical to ship 63 boxes of parts when each box has a price of $286 and holding costs are 26 percent of price, given this shipping information: overnight, $405, twoday, $265, sixday, $215. (Round your intermediate calculations to 2 decimal places.)
Overnight
Twoday
Sixday
Problem 153
A manager must make a decision on shipping. There are two shippers, A and B. Both offer a twoday rate: A for $504 and B for $526. In addition, A offers a threeday rate of $472 and a nineday rate of $410, and B offers a fourday rate of $452 and a sevenday rate of $428. Annual holding costs are 30 percent of unit price. Three hundred and sixty boxes are to be shipped, and each box has a price of $150. Which shipping alternative would you recommend? (Round your intermediate calculations to 3 decimal places and final answers to 2 decimal places. Omit the “$” sign in your response.)
A  B  
Option  Cost  Option  Cost  
2 days  $  2 days  $  
3 days  $  4 days  $  
9 days  $  7 days  $  
Ship twoday using A
Ship threeday using A
Ship twoday using B
Ship fourday using B
Ship sevenday using B
Problem 168
The following table shows orders to be processed at a machine shop as of 8:00 a.m. Monday. The jobs have different operations they must go through. Processing times are in days. Jobs are listed in order of arrival.
Job  Processing Time (Days) 
Due Date (Days) 
Remaining Number of Operations 

A  8  20  2  
B  10  18  4  
C  5  25  5  
D  11  17  3  
E  9  35  4  
Determine the processing sequence at the first work center using each of these rules: (1) First come, first served, (2) Slack per operation. (Hint: In case of a tie choose the jobs in alphabetical order.)
Sequence for First come, first served  (Click to select) ABCDE BDCAE CABDE DACBE EABCD 
Sequence for Slack per operation  (Click to select) ABCDE BDCAE CABDE DACBE EABCD 
 Compute the effectiveness of each rule using each of these measures: (1) average completion time, (2) average number of jobs at the work center. (Round your answers to 2 decimal places.)
First Come, First Served 
Slack per Operation  
Average completion time  
Average number of jobs  
Problem 1618
The Budd Gear Co. specializes in heattreating gears for automobile companies. At 8:00 a.m., when Budd’s shop opened today, five orders (listed in order of arrival) were waiting to be processed.
Order  Order Size (units) 
Per Unit Time in Heat Treatment (minutes/unit) 
Due Date (min. from now) 
A  16  4  160 
B  6  12  200 
C  10  3  180 
D  8  10  190 
E  4  1  220 
If the due date rule is used, what sequence should be used?The sequence is (Click to select) ACDBE BACDE CABED DEACB EABCD .b. What will be the average job tardiness? (Round your answer to 2 decimal places.)
Average job tardinessc. What will be the average number of jobs in the system? (Round your answer to 2 decimal places.)
Average number of jobsd. Would the Shortest processing time rule produce better results in terms of average job tardiness? (Round your answer to the nearest whole number.)
(Click to select) Yes No new average job tardiness is minutes.
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