Annual quantity of units to be produced per year= 64,000 Set up cost per run =...

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Annual quantity of units to be produced per year= 64,000 Set up cost per run = $240 Carrying Cost per unit = $5 EPR=2,478 units per run Changes in set up costs or carrying costs will change the EPR. Increase CC= EPR will decrease Decrease SC EPR qty decrease a. How much are total set up costs and carrying costs? b. As technology changes, assume that set up costs are now $200. Compute for the new EPR and the total costs. c. The engineer notes that on the 4th year, product cost would be nearly equal to sales price. What actions should the firm 'take to reduce costs? Annual quantity of units to be produced per year= 64,000 Set up cost per run = $240 Carrying Cost per unit = $5 EPR=2,478 units per run Changes in set up costs or carrying costs will change the EPR. Increase CC= EPR will decrease Decrease SC EPR qty decrease a. How much are total set up costs and carrying costs? b. As technology changes, assume that set up costs are now $200. Compute for the new EPR and the total costs. c. The engineer notes that on the 4th year, product cost would be nearly equal to sales price. What actions should the firm 'take to reduce costs?

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a Total setup costs To calculate the total setup costs we need to find out how many production runs will be required in a year Annual demand 64000 units EPR Economic Production Run 2478 units per run ... View the full answer