EOQ

Univ manufacturing produces commercial refrigerator units in batches. It costs about $135 to set up the manufacturing process, and demand for the year is 11,000 units. The carrying cost is about $55 per unit per year. When the production process has been set up, 65 refrigeration units can be manufactured daily. The demand during the production has traditionally been 50 units per day. Set days per year at zero. How many refrigeration units should Univ manufacturing produce in each batch?