If the production rate of processing a product is 20000 per year and the set up cost per set up is 200 Dollar. The demand of the product is 15000 and the inventory holding cost per unit per year is 2% of the set up cost. If the producer wants to start selling the product from the beginning of production, then

1. Determine the economic production quantity of the product to be produced in 1 set up.

2. The amounts of the product stocked at the end of the production time of the economic production quantity.

3. The number of deliveries per year

4. The annual minimum total cost of set up and inventory holding for the deliveries per year.

Answer rating: 100% (QA)

Answer 2 The amounts of the product stocked at the end of the production tim... View the full answer