Question

A company is both a producer and a user of brass couplings. The company operates 220 days a year and uses the couplings at a steady rate of 50 per day. Couplings can be produced at a rate of 200 per day. Annual holding cost is $1 per coupling, and machine set up cost is $35 per production run.

a. How many productions runs per year will there be?

Answer 1

The number of production runs per year will be 55.

Step-by-step explanation:

To determine the number of production runs per year, we need to find the number of days needed to produce all the couplings used by the company in a year. Since the company operates 220 days a year and uses 50 couplings per day, the total number of couplings used in a year is 220 * 50 = 11,000.

Since each production run produces 200 couplings, the number of production runs per year can be found by dividing the total number of couplings used in a year by the number of couplings produced in each run. So, the number of production runs per year is 11,000 / 200 = 55 runs.