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 blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!