Pack’d is a producer of Backpacks and lunch boxes. Relevant…

Pack’d is a producer of Backpacks and lunch boxes. Relevant data on the bottleneck operation in the shop for the upcoming fiscal year are given in the following table: Item Backpacks Lunch boxes demand forecast 30,000 units/yr 15,000 units/yr lot size  20 units 60 units standard processing time 0.4 hours/unit 0.5 hours/unit standard setup time 3 hours/lot 4 hours/lot   The shop works two shifts per day, 8 hours per shift, 180 days per year. Currently, the company operates [x] machines, and desires a 25 percent capacity cushion. How many machines should be purchased to meet the upcoming year’s demand without resorting to any short-term capacity solutions?

Tom Bergman, owner and operator of the Earplug Superstore, i…

Tom Bergman, owner and operator of the Earplug Superstore, is reviewing the costs associated with the store’s best-selling hearing aid, the BZ15. The data available to Dr. Bergman concerning this device follow.   Demand = 10 units/week Order cost = $3/order Holding cost = $1/unit/year The Earplug Superstore operates 52 weeks a year.   If Tom decides to order at the economic order quantity, what is the sum of the annual ordering cost and holding cost?