Ask Question, Ask an Expert

+61-413 786 465

info@mywordsolution.com

Ask Operation Management Expert

Sarah's organic soap company makes four kinds of organic liquid soap - "regular", "lavender", "citrus" and "tea tree". Demand for the four scents are 150, 120, 75 and 50 kgs per hour respectively. Sarah's production process can produce any soap at the rate of 450 kgs per hour but 1.5 hours are needed to switch between scents. During those switchover times, the process deosn't produce any soap. sarah wants to choose a production schedule that (i) cycles repeatedly through the four scents, (ii) meets the required demand and (iii) minimizes the amount of inventory held.

a) how many kgs of "regular should sarah produce before switching over to another scent.

b) sarah needs to purchase organic palm oil to make her soaps. She needs 1,000 kgs of palm oil per day on average. The supplier charges a $60 delivery fee per order (which is independent of the order size) and $4.75 per kg. Sarah's annual holding cost is 25%. Assume 52 weeks per year and 5 days per week if Sarah wants to minimize inventory holding and ordering costs, how much Palm oil should she purchase with each order (in kgs)?

c) for part b, what is the time between orders (cycle time)?

d) Sarah's supplier is willing to sell her palm oil at a 5% discount if she purchases 10,000 kgs at a time. Should Sarah order 10,000 kgs with the 5% discount or stick with her order quantity from prat b? Justify your answer by showing your calculations for the total costs per day for both options.

Operation Management, Management Studies

  • Category:- Operation Management
  • Reference No.:- M92032996

Have any Question?


Related Questions in Operation Management

Discovery and analysis of work by published organizational

Discovery and Analysis of Work by Published Organizational Theorists on the Topic Organizational Culture Investigate the organizational management issue or question by consulting at least 5 authoritative and relevant sou ...

1 what are the three ways to address peoplersquos

1. What are the three ways to address people’s resistance to change? (200 words) 2. What are some examples of Hitler’s confidence as a leader? 3. How GM handle the ignition switch recalls? 4. Differentiate between licens ...

Strategic perspectives in the retail industry1 do technical

Strategic Perspectives in the Retail Industry 1. Do technical advances brought on by innovation represent a threat or an opportunity? Why? 2. You are to research and highlight an article which discusses how a new innovat ...

Discussion creating an organizational culture is one of the

Discussion Creating an organizational culture is one of the most significant aspects of a leader's job. Recommend three methods you would use to emphasize service and quality as part of your organization's culture and ho ...

Entrepreneurship generally means that a certain level of

Entrepreneurship generally means that a certain level of innovation is involved. This doesn't mean simply creating new products or services, but it can also be developing new ways of doing existing activities. Innovation ...

Technology is taking much of the fun out of finding a place

Technology is taking much of the fun out of finding a place to park the car. Now, in cities from New York to Seattle, the door is open to a host of wireless technologies seeking to improve the parking meter even further. ...

Making attributions think about how you would explain the

Making Attributions Think about how you would explain the following actions. In each scenario, an event is described. Use the events below to answer the questions: The Events A. In event #1, imagine Karla is someone you ...

One of the most critical activities that i was involved in

One of the most critical activities that I was involved in my Current IT job was migration of a total data platform of the organization to a New Platform. The client organization we were working for was an insurance gian ...

Reinforcement perspective and social learning theoryin a

Reinforcement Perspective and Social Learning Theory In a five-paragraph essay (an intro paragraph, three body paragraphs dedicated to key points and supporting data, and a conclusion paragraph), describe the reinforceme ...

1 discuss the following approaches to discipline hot-stove

1. Discuss the following approaches to discipline: hot-stove rule and progressive discipline. 2. Of the various activities listed in Luther Gulick's POSDCORB, are there any other activities you would add that occur on or ...

  • 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

Why might a bank avoid the use of interest rate swaps even

Why might a bank avoid the use of interest rate swaps, even when the institution is exposed to significant interest rate

Describe the difference between zero coupon bonds and

Describe the difference between zero coupon bonds and coupon bonds. Under what conditions will a coupon bond sell at a p

Compute the present value of an annuity of 880 per year

Compute the present value of an annuity of $ 880 per year for 16 years, given a discount rate of 6 percent per annum. As

Compute the present value of an 1150 payment made in ten

Compute the present value of an $1,150 payment made in ten years when the discount rate is 12 percent. (Do not round int

Compute the present value of an annuity of 699 per year

Compute the present value of an annuity of $ 699 per year for 19 years, given a discount rate of 6 percent per annum. As