Question: D = 1 2 , 5 0 0 / year , so d = ( 1 2 , 5 0 0 / 2 5 0

D=12,500/year, so d =(12,500/250)=50/day, p =300/day, S =$30/order, H =$2/unit/year. Find Production Order Quantity, Number of Production Run, Maximum Inventory level, Days of demand satisfied by each production run, Days in production for each order, percent of time in production, and total cost excluding the costs of Materils.

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