Question: Lambda Optics makes microscope lens housings. Annual demand is A = 100,000 units per year. Assume that the product can be produced at the rate

Lambda Optics makes microscope lens housings. Annual demand is A = 100,000 units per year. Assume that the product can be produced at the rate of B = 200,000 units per year. Each production run costs K = $5,000 to set up, and the variable production cost of each item is c = $10. The annual cost per dollar value of holding items of inventory is h = $0.20. Compute

Economic production quantity
The length of each production run
Cycle time
Total cost

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