C&A Candy produces two kinds of gumdrops: regular and sugar-free. The data on th
ID: 350791 • Letter: C
Question
C&A Candy produces two kinds of gumdrops: regular and sugar-free. The data on these gumdrops are given below:
Regular
Sugar-Free
Demand (lbs per hour)
30
10
Changeover time (min)
60
30
Production rate (lbs per hour)
80
80
C&A first makes 90 lbs of regular gumdrops, then 30 lbs of sugar-free gumdrops, and then repeats this sequence. What is the average inventory of regular gumdrops?
O 56.25
O 45.00
O 28.13
O 22.50
Regular
Sugar-Free
Demand (lbs per hour)
30
10
Changeover time (min)
60
30
Production rate (lbs per hour)
80
80
Explanation / Answer
Answer B = 45 Regular Gum drops
The reason for 45 average invenotry is as below : The first production of 90 is carried out in 67.5 minutes. So the first lot of90 numbers made avalable for customer use post 67.5 minutes it means one hour and 7.5 minutes. Thus the average invenotry needed is 30 for one hour demand 3.375 for 7.5 minutes of demand. Which comes to arround 34 numbers for first production lot of regular gum drops. Thus 10 of as a safety stock for meeting the demand fluctuation.so it comes nealry around 45 numbers as the suitable inventory stock for the business.
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