Question
Paul Peterson is considering manufacturing hole-punch devices. As in Part A, above, the annual demand is 20,000 units. The setup cost is $100 per order,
Paul Peterson is considering manufacturing hole-punch devices. As in Part A, above, the annual demand is 20,000 units. The setup cost is $100 per order, and the carrying cost is $5 per unit per year. The demand rate is 100 units per day and the production rate is 150 units per day. What is the equation/formula to determine the economic lot size? What is the answer?
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
