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Assume that a production line operates such that the production lot size model is applicable. Assume that D=1,600 units per year, C0=$100, and Ch=$2 per

image text in transcribed Assume that a production line operates such that the production lot size model is applicable. Assume that D=1,600 units per year, C0=$100, and Ch=$2 per unit per year. (a) Compute the minimum cost production lot size for each of the following production rates. (Round your answers to the nearest integer.) (i) 8,000 units per year Q= (ii) 10,000 units per year Q= (iii) 32,000 units per year Q= (iv) 100,000 units per year Q= (b) Compute the EOQ recommended lot size using equation Q=Ch2DC0. Q= Production lot size Q and EOQ Q are equal. Increasing production rate P does not affect production lot size Q. As production rate P increases, production lot size Q decreases. Production lot size Q is greater than EOQ Q. EOQ Q is greater than production lot size Q. As production rate P increases, production lot size Q increases

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