Jan Cotters owns a small company that produces electric knives. The annual demand is estimated at 8000

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Jan Cotters owns a small company that produces electric knives. The annual demand is estimated at 8000 knives. He produces the knives in batches and can make up to 150 knives daily. The cost to set up the equipment for a batch is $100. The daily demand is 40 knives on average. It costs 80 cents to carry a knife for one year. Calculate
The optimal batch size
The daily build-up rate of inventory
The maximum inventory on hand
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Quantitative Analysis for Management

ISBN: 978-0132149112

11th Edition

Authors: Barry render, Ralph m. stair, Michael e. Hanna

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