Question: 3 ) A production facility manufactures custom metal brackets using a batch production process. The company plans to adopt the Economic Production Quantity ( EPQ
A production facility manufactures custom metal brackets using a batch production process. The company plans to adopt the Economic Production Quantity EPQ model to optimize its inventory replenishment. The production rate is significantly higher than the usage rate, allowing inventory to accumulate during production. Annual demand: units Setup cost per production run: $ Holding cost per unit per year: $ Daily production rate: units Daily usage rate: units Number of working days per year: a Calculate the Economic Production Quantity EPQ and the maximum inventory level. Round both answers to the nearest whole number. b Draw a flowchart that shows the steps of the EPQ replenishment cycle, from setup decision to production, inventory accumulation, consumption, and reorder trigger. Dont upload image draw the flowchart
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