Non-Slip Tile Company (NST)has Been Using Production Runs of 100,000

question 20

Essay

Non-Slip Tile Company (NST)has been using production runs of 100,000 tiles,10 times per year to meet the demand of 1,000,000 tiles annually.The setup cost is $5000 per run,and holding cost is estimated at 10% of the manufacturing cost of $1 per tile.The production capacity of the machine is 500,000 tiles per month.The factory is open 365 days per year.​
a.What production schedule do you recommend?
b.How much is NST losing annually with its present production schedule?
c.What is the maximum number of tiles in inventory under the current policy? Under the optimal policy?
d.What fraction of time is the machine idle (not producing tiles)under the current policy? Under the optimal policy?

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Definitions:

Schizophrenia

A profound psychiatric disorder involving significant disruptions in cognition, emotional regulation, communication, self-awareness, and conduct.

Favourable Prognosis

A medical judgement indicating that the expected course and outcome of a patient's condition is optimistic or beneficial, suggesting a good chance of recovery or stability.

Onset

The beginning or start of something, particularly referring to diseases or phenomena.

Expressed Emotion

A measure of the family environment that is based on how much criticism, hostility, and emotional over-involvement are shown towards a family member with a psychiatric disorder.