he Ice Cream Shop produces 16,235 ice creams per year. The manufacturer produces its own ice cream at a rate of 315 pieces per day. Transport cost per ice cream from the conveyor belt to stock in the freezer is $0.10/year and setup cost for a production run is $250. The facility with this special ice cream line operates 186 days a year. What are Economic Production Quantity (EPQ) and Maximum Stock (Imax)?

Answer rating: 100% (QA)

To find the Economic Production Quantity EPQ we need to use the following formula EPQ sqrt2DSH ... View the full answer