Question: EL Computer produces its multimedia notebook computer on a production line that has an annual capacity of 16,000 units. El Computer estimates the annual demand

EL Computer produces its multimedia notebook

EL Computer produces its multimedia notebook computer on a production line that has an annual capacity of 16,000 units. El Computer estimates the annual demand for this notebook to be 6,000 units. The cost to set-up the production line is $2345, and the annual holding cost is $20 per unit. Current practice calls for production runs of 500 notebook computer each month. Show your solution. a. What is the optimal production lot size? b. How many production runs should be made each year? c. Would you recommend changing the current production lot size policy from the monthly 500-unit production runs? Why or why not? What is the projected savings of your recommendation

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