Question: inventory class. The answer is not 1000 An item currently has an economic production quantity of 1000 units. The firm producing the item has decided
An item currently has an economic production quantity of 1000 units. The firm producing the item has decided to allow backorders for the item to be taken from the next production run. If holding costs per unit per year are $6.00 and backorder costs per unit are $3.00, what would be the optimum production quantity resulting from the decision to backorder? a) 1000 b) 1753 c) 1732 d) 1535
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