Problem 13-12 A company manufactures hair dryers. It buys some of the components
ID: 332154 • Letter: P
Question
Problem 13-12 A company manufactures hair dryers. It buys some of the components, but it makes the heating element, which it can produce at the rate of 910 per day. Hair dryers are assembled daily, 251 days a year, at a rate of 355 per day. Because of the disparity between the production and usage rates, the heating elements are periodically produced in batches of 2,400 units. a. Approximately how many batches of heating elements are produced annually? (Round your answer to 2 decimal places.) Number of batches b. If production on a batch begins when there is no inventory of heating elements on hand, how much inventory will be on hand 2 days later? Number of inventory c.What is the average inventory of elements, assuming each production cycle begins when there are none on hand? (Do not round intermediate calculations. Round your answer to the nearest whole number) Average Inventory d. The same equipment that is used to make the heating elements could also be used to make a component for another of the firm's products. That job would require 5 days, including setup. Setup time for making a batch of the heating elements is a half day. Is there enough time to do this job between production of batches of heating elements? O Yes O NoExplanation / Answer
Heating dryers assembling rate = 355 / day
Annual Heating Dryers assembled are = 355 x 251 (As 355 dryers per day for 251 days)
= 89105 dryers per Annum
Heating elements rate = 910 / day
One batch of heating element = 2400 units
1. Number of batched produced annually = 89105 / 2400
=37.13 bacthes
2. After two days number of heating element required = 355 x 2 (Due to dryers assembly in 2 days)
=710
Heating elements produced in one batch = 2400
Therefore, no. of inventory of heating elements after 2 days = 2400 – 710
= 1690 elements
3. Inventory of elements on day 1 = 2400
Inventory of elements on day 2 = 2400 – 355 = 2045
Inventory of elements on day 3 = 2045 – 355 = 1690
Inventory of elements on day 4 = 1690 – 355 = 1335
Inventory of elements on day 5 = 1335– 355 = 980
Inventory of elements on day 6 = 980 – 355 = 625
Inventory of elements on day 7 = 625 – 355 = 270
Therefore, Average inventory = (2400+2045+1690+1335+980+625+270) / 7
= 1335 elements
4. Yes, since the element inventory can last for 7 days, as calculated above, there is enough time to do the job between heating element production batches