A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks
A
manufacturing company sells its products directly to customers and
operates 5 days a week, 52 weeks a year. The production department of
this company can produce at the rate of 60 units per day. The setup cost
for a production run is $ 125.00. The cost of holding is $ 4.00 per
unit per year. The demand for the item is continuous and constant and is
3,900 units per year. (Note: The demand occurs only when the company is
operating, that is, 5 days a week for 52 weeks). Find the optimum
number of units to be produced in one batch (economic production
quantity). Round the number to nearest integer.
Answer
3900
570
494
300
60
Answer
3900
570
494
300
60
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