The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100
What is the production order quantity for this problem?
A) 139
B) 174
C) 184
D) 365
E) 548
C
You might also like to view...
Which of the following statements is FALSE?
a. Fraud investigations should begin in a manner that does not arouse suspicion. b. Initially, investigators should avoid using words like investigation. c. The investigation process usually starts by approaching the suspect. d. Investigators should focus on gathering the strongest types of evidence.
Which statement is true regarding work–spouse relationships?
a. Because they are intimate, they inevitably lead to romantic relationships. b. They occur in coworkers who are physically attracted to one another. c. The participants can encounter blurred personal and professional boundaries. d. They are motivated by a need for excitement and adventure.
Use the information in Scenario 9.12. If the firm decides to reduce its cycle-service level to 95%, what is the new reorder point if all other parameters remain the same for this product?
A) greater than 4,500 units B) greater than 3,500 units but less than or equal to 4,500 units C) greater than 2,500 units but less than or equal to 3,500 units D) greater than 1,500 units but less than or equal to 2,500 units E) greater than 0 but less than or equal to 1,500 units
Krepps Corporation produces a single product. Last year, Krepps manufactured 20,000 units and sold 15,000 units. Production costs for the year were as follows: Direct materials$170,000Direct labor$110,000Variable manufacturing overhead$200,000Fixed manufacturing overhead$240,000 Sales totaled $825,000 for the year, variable selling and administrative expenses totaled $108,000, and fixed selling and administrative expenses totaled $165,000. There was no beginning inventory. Assume that direct labor is a variable cost. Under absorption costing, the ending inventory for the year would be valued at:
A. $0 B. $180,000 C. $248,250 D. $216,000