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Stellar Electronics, Inc., manufactures high-quality earbuds, a trendy item in today's market. The daily demand for these earbuds is estimated at 42 pairs. The demand
Stellar Electronics, Inc., manufactures high-quality earbuds, a trendy item in today's market. The daily demand for these earbuds is estimated at 42 pairs. The demand is steady throughout the year. Stellar's production facility is capable of producing 150 pairs of earbuds per day. The setup cost for a production run is $200. The holding cost of an earbud is $50 per year. Assume there are 250 working days per year. If the company produces 300 earbuds in each run, how many production runs are needed annually? Also, at the end of production time, how many pairs of earbuds would be left in inventory
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