Suppose That a Plant Manager Uses Economic Batch Sizes for Production

question 110

Multiple Choice

Suppose that a plant manager uses economic batch sizes for production of a product. Suppose further that the setup cost is $50 per batch, the holding cost per unit per year is $10, the annual demand is 30,000 units, the firm operates (and experiences demand) 300 days per year, and the production rate per day is 1000 units. What will be the maximum inventory level that this product ever reaches?

• A) 577
• B) 30
• C) 519
• D) 27,000
• E) 58

Analyze the role of substances such as drugs and alcohol in public health.

Assess the impacts of social networks, lifestyles, and stress on health.

Understand the role of public health initiatives and personal responsibility in preventing disease.

Critique the portrayal and effects of health behaviors in media and advertising.

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Definitions:

Salvage Value

An estimate of the residual value of an asset at the end of its useful life, after it has been fully depreciated.

Book Value

The net value of a company's assets found on its balance sheet, often calculated as total assets minus intangible assets and liabilities.

Straight-line Method

A method of calculating depreciation which spreads the cost of an asset evenly across its useful life.

Accumulated Depreciation

The cumulative sum of depreciation costs charged to a fixed asset from the time of its purchase.