Question: A company assembles Telephony sets. Its demand equal to 4,211 sets. It need to order an outsourced part called (IP513) to assemble and fulfill the

A company assembles Telephony sets. Its demand

A company assembles Telephony sets. Its demand equal to 4,211 sets. It need to order an outsourced part called (IP513) to assemble and fulfill the demand yearly at $36 per part. The setup cost per order is $10, and carrying cost is 25% of the purchase price. The company operates 282 days/year. If the company used Economic Lot Size (ELS) model, and we assumed that the company will produce the IP513 in-house, at a ?production rate of 16 parts a day. What would be the optimal run size (Qo) in units 20 A company assembles Telephony sets. Its demand equal to 4,211 sets. It need to order an outsourced part called (IP513) to assemble and fulfill the demand yearly at $36 per part. The setup cost per order is $10, and carrying cost is 25% of the purchase price. The company operates 282 days/year. If the company used Economic Lot Size (ELS) model, and we assumed that the company will produce the IP513 in-house, at a ?production rate of 16 parts a day. What would be the optimal run size (Qo) in units 20

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