Macho Auto Company needs to produce 10,000 car chassis per year. Each is valued at $2,000. The
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Macho Auto Company needs to produce 10,000 car chassis per year. Each is valued at
$2,000. The plant has the capacity to produce 25,000 chassis per year. It costs $200 to set up a production run, and the annual holding cost is 25¢, per dollar of inventory. Determine the optimal production run size. How many production runs should be made each year?
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Related Book For
Operations Research Applications And Algorithms
ISBN: 9780534380588
4th Edition
Authors: Wayne L. Winston
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