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Tamarisk Plus wants to determine the most cost efficient production run for their dinner plates. This quantity should minimize the carrying costs of inventory
Tamarisk Plus wants to determine the most cost efficient production run for their dinner plates. This quantity should minimize the carrying costs of inventory and the setup costs of production. Management also wants to avoid stock-outs because this disrupts retail sales and creates rush orders which disrupt production of other dinnerware pieces. The following information is available: Annual demand for dinner plates Average daily demand for dinner plates 259,000 800 Maximum daily demand for dinner plates 890 Carrying cost per dinner plate $0.25 Setup costs $155 Lead time 5 days (a) Calculate the economic production batch size. (Round answer to 0 decimal places, e.g. 125.) Economic order quantity dinner plates
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