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A) where demand was 1000 units/yr, setup cost was S500 per setup, and holding costs were S35/unit yr. Create a graph showing annual setup cost,
A) where demand was 1000 units/yr, setup cost was S500 per setup, and holding costs were S35/unit yr. Create a graph showing annual setup cost, annual holding cost, and annual total inventory cost against order quantity (note you do not need to plot the annual production cost). You may use a software package such as Excel, or plot neatly by hand. Then calculate the optimum lot size, and indicate it on the graph. What observations can you make
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