Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

A machine manufactures spare parts at the rate of 20,000per month. A second machine uses those spare parts at the rate of 50,000 per month

A machine manufactures spare parts at the rate of 20,000per month. A second machine uses those spare parts at the rate of 50,000 per month and the remainder is put into stock. it costs 100,000 to set up the machine, the company establish their stock hold cost 20% per annum of the average stock value. each parts cost 250 to make. what batch size should be produced on the first machine and at what frequency?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Introductory Econometrics A Modern Approach

Authors: Jeffrey Wooldridge

7th Edition

1337558869, 978-1337558860

More Books

Students also viewed these Economics questions

Question

1. Information that is currently accessible (recognition).

Answered: 1 week ago