Question
Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility 300 days per year. It has orders for
Radovilsky Manufacturing Company, in Hayward, California, makes flashing lights for toys. The company operates its production facility
300
days per year. It has orders for about
12,100
flashing lights per year and has the capability of producing
100
per day. Setting up the light production costs
$51.
The cost of each light is
$1.00.
The holding cost is
$0.10
per light per year.Part 2a) What is the optimal size of the production run?
_________
units (round your response to the nearest whole number).
what is the average holding cost per year? _________ (round your response to two decimal places).
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