X hits on this document

86 views

0 shares

0 downloads

0 comments

21 / 30

ME 482 - Manufacturing Systems

WIP inventory example

Problem: Inventory Holding Cost for WIP During Manufacturing

The cost of the raw material for a certain part is $100. The part is processed through 20 processing steps in the plant, and the manufacturing lead time is 15 wk. The production time per processing step is 0.8 hr, and the machine and labor rate is $25.00/hr. Inspection, material handling, and other related costs average to $10 per processing step by the time the part is finished. The interest rate used by the company i = 20%, and the storage rate s = 13%. Determine the cost per part and the holding cost.

Document info
Document views86
Page views81
Page last viewedWed Jan 18 13:37:07 UTC 2017
Pages30
Paragraphs243
Words1955

Comments