Mechanical Engineering Exam > Mechanical Engineering Questions > A manufacturing company has a contract to su...
Start Learning for Free
A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________
- a)230
- b)1236
Correct answer is between ' 230, 1236'. Can you explain this answer?
| FREE This question is part of | Download PDF Attempt this Test |
Verified Answer
A manufacturing company has a contract to supply 5000 components to a...
Consumption rate = d = 5000/day
Production rate = k = 7000/day
= 0.073
TC)min = 1233.9
Most Upvoted Answer
A manufacturing company has a contract to supply 5000 components to a...
To find the total inventory cost per annum on the optimum basis, we need to consider the carrying cost, set-up cost, and the production capacity of the manufacturing company.
Carrying Cost Calculation:
The carrying cost is the cost associated with holding inventory. In this case, the carrying cost of 1000 components is given as 20 paise per day. To calculate the carrying cost per annum, we need to multiply this cost by the number of days in a year (365).
Carrying cost per annum = Carrying cost per day * Number of days in a year
= 20 paise * 1000 * 365
= Rs. 7300
Set-up Cost Calculation:
The set-up cost is the cost incurred each time the manufacturing company starts a new production run. In this case, the set-up cost is given as Rs. 20 per set-up.
Total set-up cost per annum = Set-up cost per set-up * Number of set-ups per annum
Now, we need to determine the number of set-ups per annum. Since the manufacturing capacity is 7000 components per day and the automobile company requires 5000 components per day, the manufacturing company needs to produce 5000 components each day to meet the demand. Therefore, the number of set-ups per day is given by:
Number of set-ups per day = Manufacturing capacity / Components required per day
= 7000 / 5000
= 1.4
However, since the number of set-ups cannot be a fraction, we round it up to the nearest whole number. Therefore, the number of set-ups per day is 2.
Number of set-ups per annum = Number of set-ups per day * Number of working days per annum
= 2 * 365
= 730
Total set-up cost per annum = Rs. 20 * 730
= Rs. 14,600
Total Inventory Cost Calculation:
The total inventory cost per annum can be calculated by summing up the carrying cost and the set-up cost.
Total inventory cost per annum = Carrying cost per annum + Total set-up cost per annum
= Rs. 7300 + Rs. 14,600
= Rs. 21,900
Therefore, the total inventory cost per annum on the optimum basis is Rs. 21,900 (option b).
Carrying Cost Calculation:
The carrying cost is the cost associated with holding inventory. In this case, the carrying cost of 1000 components is given as 20 paise per day. To calculate the carrying cost per annum, we need to multiply this cost by the number of days in a year (365).
Carrying cost per annum = Carrying cost per day * Number of days in a year
= 20 paise * 1000 * 365
= Rs. 7300
Set-up Cost Calculation:
The set-up cost is the cost incurred each time the manufacturing company starts a new production run. In this case, the set-up cost is given as Rs. 20 per set-up.
Total set-up cost per annum = Set-up cost per set-up * Number of set-ups per annum
Now, we need to determine the number of set-ups per annum. Since the manufacturing capacity is 7000 components per day and the automobile company requires 5000 components per day, the manufacturing company needs to produce 5000 components each day to meet the demand. Therefore, the number of set-ups per day is given by:
Number of set-ups per day = Manufacturing capacity / Components required per day
= 7000 / 5000
= 1.4
However, since the number of set-ups cannot be a fraction, we round it up to the nearest whole number. Therefore, the number of set-ups per day is 2.
Number of set-ups per annum = Number of set-ups per day * Number of working days per annum
= 2 * 365
= 730
Total set-up cost per annum = Rs. 20 * 730
= Rs. 14,600
Total Inventory Cost Calculation:
The total inventory cost per annum can be calculated by summing up the carrying cost and the set-up cost.
Total inventory cost per annum = Carrying cost per annum + Total set-up cost per annum
= Rs. 7300 + Rs. 14,600
= Rs. 21,900
Therefore, the total inventory cost per annum on the optimum basis is Rs. 21,900 (option b).
Attention Mechanical Engineering Students!
To make sure you are not studying endlessly, EduRev has designed Mechanical Engineering study material, with Structured Courses, Videos, & Test Series. Plus get personalized analysis, doubt solving and improvement plans to achieve a great score in Mechanical Engineering.
|
Explore Courses for Mechanical Engineering exam
|
|
Similar Mechanical Engineering Doubts
Top Courses for Mechanical EngineeringView all
A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer?
Question Description
A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer? for Mechanical Engineering 2024 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer?.
A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer? for Mechanical Engineering 2024 is part of Mechanical Engineering preparation. The Question and answers have been prepared according to the Mechanical Engineering exam syllabus. Information about A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer? covers all topics & solutions for Mechanical Engineering 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer?.
Solutions for A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer? in English & in Hindi are available as part of our courses for Mechanical Engineering.
Download more important topics, notes, lectures and mock test series for Mechanical Engineering Exam by signing up for free.
Here you can find the meaning of A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer? defined & explained in the simplest way possible. Besides giving the explanation of
A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer?, a detailed solution for A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer? has been provided alongside types of A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice A manufacturing company has a contract to supply 5000 components to an automobile company per day. The manufacturing capacity of the company is 7000 components per day. The carrying cost of 1000 components is 20 paise per day. The set-up cost is Rs. 20. The total inventory cost per annum on optimum basis is __________a) 230b) 1236Correct answer is between ' 230, 1236'. Can you explain this answer? tests, examples and also practice Mechanical Engineering tests.
|
|
Explore Courses for Mechanical Engineering exam
|
|
Suggested Free Tests
Signup for Free!
Signup to see your scores go up within 7 days! Learn & Practice with 1000+ FREE Notes, Videos & Tests.
|
© EduRev
|
Education Revolution
|
Follow Us
|
Signup to see your scores
go up within 7 days!
Access 1000+ FREE Docs, Videos and Tests
Takes less than 10 seconds to signup