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Please answer correctly. I have used multiple questions on this question. 15 Montegut Manufacturing manufactures a product for which the annual demand is 10,000 units.
Please answer correctly. I have used multiple questions on this question. 15
Montegut Manufacturing manufactures a product for which the annual demand is 10,000 units. Production averages 100 units per day, while demand is 40 units per day. Holding costs are $1.00 per unit per year and setup cost is $200. The new operations manager hired by Montegut wishes to reduce inventory costs by ordering small order quantities/lot sizes of 100 units each. What value of setup cost below would make such a policy optimal ? $300 per order or setup $30 per order or setup $3 per order or setup 30 cents per order or setup Montegut cannot reduce inventory costs as that would start a national recession (wrong choice !!)
Please answer correctly. I have used multiple questions on this question. 15
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