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exercises production management costs
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Pinocchio’s Father produces wooden puppets with varying production and sales volumes. The company faces fluctuating demand and has different costs including raw materials, energy, labor, transportation, and insurance. Stock holding cost calculations are required under three scenarios: no loans, using a loan for normal activities, and using the full allowed loan.
For MoNoI production, setup costs are analyzed based on four different yearly demands, considering standard rate, overtime, subcontracting, and fixed setup-related expenses.
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- Exercise A - Stock Holding Cost: Calculate the annual stock holding cost for Pinocchio’s Father under different financial scenarios (no loans with liquidity, using loan at normal rate, and full loan with highest burden rate).
- Exercise B - Setup Cost: Determine the total setup cost for producing MoNoI in a process plant under various yearly demand levels (8,000 kg/year, 10,500 kg/year, 11,500 kg/year, and 15,000 kg/year), considering setup costs, overtime production, and subcontracting.
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DESIGN AND MANAGEMENT OF PRODUCTION SYSTEMS · 1° anno · 2° semestre · 10 CFU · IIND-05/A
The main objective of the course is to deliver knowledge about the technical organisations, the methods and tools for the design and management of a production system. Specifically, the course contributes to the development of the following skills: understanding the context, functions, processes, and key…