Emarpy Appliances Inc. wants to determine the optimal production policy for their best selling refrigerator. The demand for this has been relatively constant at about $8,000$ each year. The production capacity for this product is limited to $200$ units per day. Each time production starts, it costs the company $$120$ to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $$50$ per unit per year. Assume there are $250$ working days per year. If Emarpy Inc wants to minimize the total annual inventory cost, how many refrigerators should be produced in each production run?

Selected Answer:

Correct

$213\mathrm{.}81$

Correct Answer:

Correct

$213\mathrm{.}81$