Johnson Plastics makes and sells, among many other things, specialty plastic dis

Question

Johnson Plastics makes and sells, among many other things, specialty plastic display cases for retail stores. Johnson's expected annual demand for the display cases is 2,300 units, and average daily demand is 3 units. The production process is most efficient when 17 units per day are produced at a cost of $110 per unit. Setup cost is $14. Inventory carrying cost at Johnson is determined to be 10 percent annually a. What is the best production order quantity? (Round up your answer to the next whole number.) Production order 85 units uan b. How many days is a required production run? (Round your answer to 3 decimal places.) um 28.333

Explanation / Answer

Here production order quantity(Q) = 85 u its

Production rate(p) = 17 units per day

b) Number of days a required production run is = Q/p = 85/17 = 5 days

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.