Question: Problem 4 (18 points). For below three products, you were asked to determine the economic production quantities. They use the same equipment. For each product,

Problem 4 (18 points). For below three products,

Problem 4 (18 points). For below three products, you were asked to determine the economic production quantities. They use the same equipment. For each product, unit cost is based on $5 per material, $5 per production and $5 per overhead costs. Assume that company operates 216 days per year. The following table has the needed information: Product Annual Demand ($) Annual Production (units) Holding cost ($ per unit per year) Set up cost ($) per order A B $350,000 $175,000 $125,000 25,000 12,000 10,000 $10 $5 $3 $35 $15 $20 a. (18 points). Find the economic order quantity for each product (assume non- instantaneous receipt for the lots)

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