Question: Holstein Computing manufactures an inexpensive audio card (Audio Max) for assembly into several models of its microcomputers. The following is their data: Demand 36,162 cards
Holstein Computing manufactures an inexpensive audio card (Audio Max) for assembly into several models of its microcomputers. The following is their data:
| Demand | 36,162 cards per quarter |
| Carrying Cost | $5 per card per year |
| Setup Cost | $750 per order |
The company operates 250 days per year. The machine used to manufacture this part has a production rate of 2000 units per day.
Using an EPQ model, what is their optimum lot size?
*round 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
