1 healthy plants ltd hp produces its premium plant food in, Ask an Expert

Management Studies

1. Healthy Plants Ltd. (HP) produces its premium plant food in 50-pound bags. Demand for the product is 10,000 pounds per week. HP operates fifty weeks per year and can produce 26,000 pounds per week. The setup cost is $190 and the annual holding cost rate is $0.62 per bag. Currently, HP produces its premium plant food in batches of 1,200,000 pounds.

Calculate the total annual costs of this operating policy.

2. Healthy Plants Ltd. (HP) produces its premium plant food in 50-pound bags. Demand for the product is 100,000 pounds per week. HP operates fifty weeks per year and can produce 250,000 pounds per week. The setup cost is $200 and the annual holding cost rate is $0.55 per bag. Currently, HP produces its premium plant food in batches of 1,000,000 pounds. Determine what will happen if HP uses the economic production quantity model to establish the quantity produced each cycle.

(Round your answers to 2 decimal places, the tolerance is +/-0.01.Do not round your intermediate computations.)

(a) Calculate the economic production quantity in pounds (EPQ)

(b) Calculate the maximum inventory level using the EPQ in pounds

View complete question

Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92179387

Have any Question?Write your Review or question?

Related Questions in Operation Management

Your engineering consulting firm is in the middle of a very

Your engineering consulting firm is in the middle of a very profitable year. Yet, you have some engineers that have some idle time. You can either give them time off or find some work for them. The variable cost for the ...

Casenbsp talbot razor products companyone of the products

CASE Talbot Razor Products Company One of the products marketed by Talbot Razor Products Company is an after-shave lotion called Enhance. This brand is sold through drugstores, supermarkets, and department stores. Sales ...

1 compare and contrast new-product pricing strategies and

1. Compare and contrast new-product pricing strategies, and discuss the conditions under which each is appropriate 2. What is the economic impact of non-revenue generating activity in the motor carrier industry? 3. Which ...

1 describe and rate volkswagen 1 business ethics 2 social

1. Describe and rate Volkswagen 1) business ethics, 2) social responsibility, and 3) environmental sustainability 2. List and describe the three types of administrative agencies 3. Briefly explain how environmental uncer ...

A company has fixed cost of 45000 variable cost per unit of

A company has fixed cost of $45,000, variable cost per unit of $11, and sells its product at $18 each. a) What quantity must the firm sell in order to break-even? Explain how you reached this conclusion. b) What is the f ...

Answer the following question identify two ways that

Answer the following Question : Identify two ways that healthcare organizations perform marketing related data capture that do not violate any regulatory stipulations. Analyze and discuss how these might change in the fu ...

1 find a credible news story in the usa from the past 3

1. Find a credible news story in the USA from the past 3 months that employs one of the fallacies of emotional argument. Explain which argument is used, how it’s used, and whether it’s effective. The fallacies of an emot ...

Suppose a company has two processes to choose from process

Suppose a company has two processes to choose from. Process A will incur a total fixed cost of $1 million a year and a per-unit variable cost of $4. Process B will incur a total fixed cost of $1.5 million a year and a pe ...

1 how does diversity impact a grouphow does this impact

1. How does diversity impact a group? How does this impact decision making? Provide some rel life examples from your work experiences. (Please answer in 4-5 Sentences) 2. Name the different generational cohorts. What are ...

1 as an operation or performance management what are some

1. As an operation or performance management what are some approaches to improving productivity in a healthcare department position 2. What is the Pros and cons for using (Radical application development) strategy to dev ...

4,153,160 Questions Asked
13,132 Experts
2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Recent Questions

Ask Operation Management Expert