The NYCU company produces glass windows. The glass windows can be produced at a rate of...

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The NYCU company produces glass windows. The glass windows can be produced at a rate of 1,000 per day. Demand for the window is 240 pounds per day. The fixed cost of setting up for a production run of the window is $45,000, and the variable cost of production is $100 per window. The holding cost (including storage and handling) per window per year is 10 percent of the variable cost. Assume that there are 250 working days in a year. (a) What is the economic production lot size? (3%) (b) What is the total annual cost of holding and setup per window? (4%) (c) What is the time between orders for the ELS? (3%) The NYCU company produces glass windows. The glass windows can be produced at a rate of 1,000 per day. Demand for the window is 240 pounds per day. The fixed cost of setting up for a production run of the window is $45,000, and the variable cost of production is $100 per window. The holding cost (including storage and handling) per window per year is 10 percent of the variable cost. Assume that there are 250 working days in a year. (a) What is the economic production lot size? (3%) (b) What is the total annual cost of holding and setup per window? (4%) (c) What is the time between orders for the ELS? (3%)

Answer rating: 100% (QA)

a To determine the economic production lot size we can use the Economic Order Quantity EOQ formula w... View the full answer