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Problem is 7 limentory Amalysis Ceramies Direet produces tiles for luxury flooring. The demand per month is 7 0 0 pounds of tile. Ceramies Direet

Problem is 7 limentory Amalysis
Ceramies Direet produces tiles for luxury flooring. The demand per month is 700 pounds of tile. Ceramies Direet can produce 1500 pounds of tile per month. Sinee the machinery gets dirty and must be cleaned before every bateh the setup eost if $300. It cost $10 to produee one pound of tile. The inventory eost is 30% of annual cost. There can be a chance of backlogging. The two types are loss of goodwill, which is about $20 per pound. Shortage penalty is $1.50 per pound short every month. Find the economie order quantity, optimal backorder, and annual total cost of inventory,
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