Jack Spratt Is the Production Manager for a Manufacturing Firm

question 64

Multiple Choice

Jack Spratt is the production manager for a manufacturing firm that produces wizzy-gadgets and other items.The annual demand for a particular wizzy-gadget is 1,600 units.The holding cost is $2 per unit per year.The cost of setting up the production line is $25.There are 200 working days per year.The production rate for this product is 80 per day.If his maximum inventory level is 180 units,how many units did he produce each time he started production of the wizzy-gadgets?

• A)200
• B)180
• C)100
• D)90
• E)None of the above

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Definitions:

Ground Substance

The amorphous, gel-like substance surrounding cells and fibers within the extracellular matrix of connective tissue.

Connective Tissue

A group of tissues in the body that maintain the form of the body and its organs and provide cohesion and internal support.

Fibers

Long, thin strands of material, either natural or man-made, that can be woven into textiles or used in other manufacturing processes.

Liquid Connective Tissue

Blood; a specialized body fluid with cells suspended in a liquid matrix (plasma), involved in transporting nutrients, oxygen, waste products, and other substances throughout the body.