One-Eyed Toad Pottery makes custom planters for upscale clients. The average demand for planters is 20 per
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One-Eyed Toad Pottery makes custom planters for upscale clients. The average demand for planters is 20 per week. One-Eyed Toad's production facility has the capacity to make 25 planters per week. Setup cost is $1,500. The value of finished goods inventory is $250 per planter. The annual per-unit inventory holding cost is 35 percent of the item's value.
a. What is the economic production lot size (ELS)?
b. What is the average time between orders (TBO)?
c. What is the total of the annual holding cost and setup cost?
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Related Book For
Operations Management Processes And Supply Chains
ISBN: 9781292409863
13th Global Edition
Authors: Lee Krajewski, Naresh Malhotra, Larry Ritzman
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