A firm wants to develop a level material use schedule based on the following data. What should be the setup cost? Desired lot size: 60 Annual demand: 40,000 Holding cost: $20 per unit per year Daily production rate: 320 Work days per year: 250

$0.45

Explanation:

Given that

Desired lot size = 60

Annual demand = 40000

Holding cost = 20 per unit

Daily production rate = 320

Workdays per year = 250

Recall that

S = (Q^2 H[1 - d/p])/ 2d

Where S = setup cost

D = annual demand

Q = order quality

P = daily production

Seeing that daily demand is not given. We find d

d = 40000/250 = 160

Therefore

S = [60^2 20( 1 - 60/320)] / 2 × 40000

S = 3600 20 ( -1.12)/ 80000

S = $0.45

set up cost is $-111.6 ~ $ -112.

Explanation:

In determining the set up costs, the formula used is (Q ^ 2 * H[1 - d ÷ P]) ÷ 2 × D

where;

Q represents Desired lot size

H represents Holding Cost

D represents Annual Demand

P represents Daily production

Therefore, (60 ^ 2 × 20[1 - 40,000 ÷ 320] ÷ 2 × 40,000)

= 72,000[ 1 - 125] ÷ 80,000

= 72,000[ -124] ÷ 80,000

= -8,928,000 ÷ 80,000

=$ -111.6 is the set up cost.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.