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book Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley cover

Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Edition 1ISBN: 978-0077426903
book Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley cover

Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley

Edition 1ISBN: 978-0077426903
Exercise 23
Suppose Bryson develops a production process that is most efficient when 6,000 yards/day are produced at a cost of $4.50/yard.Everything else remains the same.How does this affect the calculation in problem 18?
(In Reference Problem 18)Bryson Carpet Mills produces a variety of different carpets.Changing from production of one carpet to another involves a setup cost of $1,000.One particular carpet cost $5/yard to produce.Annual demand for this style is 120,000 yards.Bryson Mills produces carpet 300 days per year.The production process is most efficient when 4,000 yards/day are produced.Inventory carrying cost is estimated at 20% annually.What should be the production order quantity?
Explanation
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Managing Operations Across the Supply Chain 1st Edition by Morgan Swink,Steven Melnyk,Bixby Cooper, Janet Hartley
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