I was solving one question and I'm a bit stuck in one place. The question had time and demand given, we had to calculate different types of forecast and calculate EOQ from the forecasted demand.

There are two Products. Product A has a EOQ of 79, Demand 61 while Product B has a EOQ of 138, Demand 140. Some more values were given and we had to use excel solver to maximise revenue for producing both product A and B. The solver states that 50 units of A and 516 units of B should be produced.

1. Now should should I compare the EOQ and demand values to that obtained from excel solver and provide a possible solution.

2. How should the production facility be sized for this purpose? What things should be considered? It is also mentioned in the question that changing the production rate is very large.