Question: D = 7 5 0 0 units per year Co = $ 5 0 per setup Ch = $ 2 per unit per year. Compute

D =7500 units per year Co = $50 per setup Ch = $2 per unit per year. Compute the minimum cost production lot size for each of the following production rates, below. What is the EOQ, given the same parameters? 8,000 units per year, 15,000 units per year, 50,000 units per year, 100,000 units per year. Problem 2b.(5 points) What two observations can you make about the relationship between the EOQ model and the production lot size model?

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