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Help me solve this problem using the equation provided. Dan Bumblauskas is the owner of a small lowa company that produces electric knives used to
Help me solve this problem using the equation provided.
Dan Bumblauskas is the owner of a small lowa company that produces electric knives used to cut fabric. The annual demand is for 8,000 knives, and Dan produces the knives in batches. On average, Dan can produce 140 knives per day; during the production process, demand has been about 90 knives per day. The cost to set up the production process is $100, and it costs Dan $1.20 to carry a knife for 1 year. How many knives should Dan produce in each batch? Dan should produce knives in each batch (round your response to the nearest whole number). To find the economic order quantity, use the following formula: EOQ=H(1pd)2DS where EOQ= optimum number of units per order, D= annual demand in units, S= setup or ordering cost for each order, H= holding cost per unit per year, d= daily demand rate, p= production rateStep by Step Solution
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