Pointe Au Chien Containers,Inc

question 159

Essay

Pointe au Chien Containers,Inc. ,manufactures in batches,and the manufactured items are placed in stock.Specifically,the firm is questioning how best to manage a specific wooden crate for shipping live seafood,which is sold primarily by the mail/phone order marketing division of the firm.The firm has estimated that carrying cost is $4 per unit per year.In addition,annual demand = 60,000 units,and setup cost is $300.The firm currently plans to satisfy all customer demand from stock on hand.Demand is known and constant.The production rate is nearly instantaneous.
a.What is the cost minimizing size of the manufacturing batch?
b.What is the total annual holding and setup cost of this solution?

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Definitions:

Influence Methods

Techniques or strategies used to sway or change others' opinions, behaviors, or decisions.

Rational Model

A decision-making framework that assumes individuals make decisions based on logical and systematic analysis of alternatives, leading to optimal outcomes.

Political Model

A framework describing the power dynamics and influence tactics used within organizations to gain advantage or support for specific agendas or decisions.

Creative Stages

The phases involved in the process of generating original and innovative ideas or solutions, typically including preparation, incubation, insight, evaluation, and implementation.