A Computer Manufacturer Can Produce Laptops at the Rate of 100

question 5

Essay

A computer manufacturer can produce laptops at the rate of 100 per day.The manufacturer supplies its laptops to various computer retail outlets at a rate 65 per day.Set up cost for a production run is $500.Carrying cost is $125 per laptop a year.Assume the manufacturer operates 300 days a year.
a.What is the optimal production run size?
b.What is the minimum total annual cost for carrying and set up?
c.What is the length of a production run?

---

Definitions:

Relevant Data

Information that is directly related and useful to the decision-making process in research or business analysis.

Supply Chain

The sequence of processes involved in the production and distribution of a commodity.

Production Processes

The methods and sequences of operations used to design, manufacture, and deliver products or services.

SCM Components

Elements that make up Supply Chain Management, including planning, sourcing, production, delivery, and logistics.