Question: Consider a production system. Suppose demand is constant at 1 unit / day . The production line can produce 1 0 0 0 units /

Consider a production system. Suppose demand is constant at 1 unit/day. The production line can produce 1000 units/year (and each year has 365 days). Then, given the setup cost S and the holding cost H , we can calculate the optimal run size of this EPQ model as Q**?S=qrt(2SH)** Sqrt(1000/999).
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Consider a production system. Suppose demand is constant at 1 unit/day.

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