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The annual demand of an appliance company is 8 0 0 0 units. The production capacity is 2 0 0 units per day. Each time

The annual demand of an appliance company is 8000 units. The production capacity is
200 units per day. Each time production starts, it costs the company $120 to move
materials into place, reset the assembly line, and clean the equipment. The holding cost
of a refrigerator is $50 per year. The current production plan calls for 400 refrigerators to
be produced in each production run. Assume 250 working days per year.The annual demand of an appliance company is 8000 units. The production capacity is
200 units per day. Each time production starts, it costs the company $120 to move
materials into place, reset the assembly line, and clean the equipment. The holding cost
of a refrigerator is $50 per year. The current production plan calls for 400 refrigerators to
be produced in each production run. Assume 250 working days per year.

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