Business, 19.11.2020 18:40, kah36

Consider a product with a daily demand of 400 units, a setup cost per production run of $100, a holding cost per unit of $24.00, and an annual production rate of 292,000 units. The firm operates and experiences demand 365 days per year. a. What is the Production Order Quantity?

b. What is the max inventory on hand?

c. What is the average inventory?

d. What are the total holding costs?

e. What does it cost to manage the inventory?

Answers: 3

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Consider a product with a daily demand of 400 units, a setup cost per production run of $100, a hold...