Question: Hitch A is the 1 - 1 / 4 inch, light duty, natural hitch. Simone has forecast the demand for this hitch at 6 ,
Hitch A is the inch, light duty, natural hitch. Simone has forecast the demand for this hitch at units for the next year. It takes one operator hours to perform a setup to produce a batch for this hitch and no other setup costs are incurred when setting up the machine. In addition, the holding costs for this item are $ per unit per year. This hitch has a current batch size of units per production run.
Simone has determined that traditional EOQ is applicable for this problem. Determine the order quantity EOQ Simone should use if this determination is correct.
Don't round any numbers in the middle of the problem. Provide your answer to two decimal places
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
