C&A Ice Cream Production Optimization

How to optimize ice cream production for C&A?

How many gallons of ice cream should C&A produce in each production cycle to minimize inventory while satisfying demand?

Answer:

C&A should plan their production in each hour by spending 45 minutes setting up the machine and 30 minutes producing 0.5 gallons of ice cream - the highest demand - for each flavor. This minimizes overproduction. Neither option directly answers the question.

Explanation:

To satisfy the demand while minimizing inventory, C&A should plan their production based on the highest demand per hour, which is 0.5 gallons for chocolate. Therefore, in each hour, the company should spend 45 minutes setting up the machine and 30 minutes producing 0.5 gallons of ice cream for each flavor. This approach ensures that the demand for each flavor is met without overproducing any particular flavor.

Note: This solution assumes that the setup time is the same regardless of the flavor being produced and that the company can switch between flavors without any additional setup time.

Therefore, it appears that neither option a (28.125) nor option b (16.75) directly answers this question based on the information provided. It may be worth seeking further clarification.

← Uhc universal health coverage chart analysis The importance of revenue recognition principle in accounting →