Jerry Allison Is in Charge of Production for a Small

question 3

Multiple Choice

Jerry Allison is in charge of production for a small producer of plumbing supplies. The cricket model has an estimated annual demand of 12,000 units and can be produced at a production rate of 90 units per day. The company produces (and sells) the cricket 300 days per year. Setup cost to produce this model averages $22 and the item has a holding cost of $3 per unit per year.
-Use the information in Scenario D.1.How many production runs per year are needed if Jerry chooses to produce at his economic production lot size (ELS) ?

• A) Fewer than or equal to 10 runs
• B) Greater than 10 runs but fewer than or equal to 20 runs
• C) Greater than 20 runs but fewer than or equal to 30 runs
• D) Greater than 30 runs

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Definitions:

Biodegradable Plastic

A type of plastic that decomposes naturally by the action of living organisms, such as bacteria, making it environmentally friendly.

Agricultural Produce

Products that are grown and harvested from farming activities, including crops, fruits, vegetables, and livestock products.

Yield to Maturity

The total expected return on a bond if it is held until the date it matures, accounting for its current market price, par value, coupon interest rate, and time to maturity.

Interest Rates

The percentage of a sum of money charged for its use, typically expressed as an annual percentage rate.