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ABC is the owner of a small company that produces electric knives used to cut fabric. The annual demand is 1 0 0 0 0
ABC is the owner of a small company that produces electric knives used to cut fabric. The annual demand is for knives, and ABC produces the knives in batches. On average, ABC can produce units per day, the number of working days in a year is days. The cost to set up the production process is VND and it costs the company VNunitmonth Know that, at the start of every batch production the inventory is units.
a How many knives should ABC produce in each batch?
b What is the maximized inventory of the company?
c What is the total annual set up cost and holding cost?
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