A Production Manager Uses the Economic Lot Size Approach to Determine

question 40

Essay

A production manager uses the economic lot size approach to determine the batch size for a product with an annual demand of 20,000 units per year. The setup cost for each batch is $50 and once the setup is complete, the product may be produced at the rate of 800 units per day. There is a holding cost of $2 per unit per year and the plant operates on a 250-day production year. If the machine used to produce this product is needed for another item and it takes one day to set up regardless of product, how many production days are available for production of the new item?

Assess the implications of environmental stability on plant reproductive strategies.

Understand the concept of asexual reproduction and tissue culture techniques in plants.

Recognize the implications of genetic uniformity and diversity on plant population survival.

Describe the principles and processes involved in plant grafting.

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Definitions:

Interest Rates

The cost of borrowing money or the return on invested savings, typically expressed as a percentage of the principal amount per year.

Deposit Expansion Multiplier

The ratio of the amount by which deposits can increase to the original amount of new reserves; it shows how money multiplies in the banking system.

Reserve Ratio

This is the fraction of depositors' balances banks must have on hand as cash.

Discount Rate

The rate of interest applied to loans obtained by commercial banks and other saving organizations from the lending facility of their regional Federal Reserve Bank.