Business, 31.12.2019 03:31 oranzajimenez

Consider a product with a daily demand of 400 units, a setup cost per production run of $100. monthly holding cost are 15%. unit cost is $55.75. the company has an annual production rate of 292,000 units. the firm operates and experiences demand 365 days per year.

a. what is the production quantity?

b. what is the maximum inventory level that the company is capable of having on hand?

c. what is the cost of managing the inventory?

d. what is the number of setups?

e. what is the total cost, including the unit cost?

Answers: 2

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

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