The dedicated production line with the following figures Production setup cost ($/setup) Holding cost ($ for each
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The dedicated production line with the following figures
Production setup cost ($/setup) | Holding cost ($ for each PCS/year) | Demand (PCS/year) | Capacity (PCS/year) |
100 | 0.90 | 7,000 | 34,000 |
a. Determine: i) The optimal production quantity ii) The total annual inventory cost iii) The number of production runs per year iv) The maximum inventory level. b. If it has only enough storage space to hold a maximum of 93 PCS in inventory, how will that affect total annual inventory costs?
Related Book For
Quantitative Methods for Business
ISBN: 978-0324651751
11th Edition
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey cam
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