Given the following information for a part manufactured in-house, can you compute the economic manufacturing quantity? Provide
Question:
Given the following information for a part manufactured in-house, can you compute the economic manufacturing quantity? Provide a brief explanation to support your answer.
Annual demand = 500,000 units
Daily production rate = 1,000 units
Setup cost = $250 per order
Holding rate = 40 percent per year
Value of finished part = $120 per unit
Number of days per year = 360 days
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Step by Step Answer:
There is no economic manufacturing quantity for this problem because the annual demand ...View the full answer
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Related Book For 
Principles of Supply Chain Management A Balanced Approach
ISBN: 978-1337406499
5th edition
Authors: Joel D. Wisner, Keah Choon Tan, G. Keong Leong
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