A company uses the finite replenishment model to determine the optimal quantity to produce. There are 250

Question:

A company uses the finite replenishment model to determine the optimal quantity to produce. There are 250 days a year over which demand and production occur. The daily demand is 480, and the production rate is 800 per day. The setup cost for production is $600 per setup. Assuming that if the carrying cost is 20 percent of the item’s $50 cost, what is the length, in days, of a production run if the company produces the replenishment quantity that minimizes its inventory-related costs?
Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Managing Supply Chain and Operations An Integrative Approach

ISBN: 978-0132832403

1st edition

Authors: Thomas Foster, Scott E. Sampson, Cynthia Wallin, Scott W Webb

Question Posted: