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The Auni Furniture Factory produce chairs made from Jati wood. The cutting department supplies the legs for chair to the assembly department. One chair uses
The Auni Furniture Factory produce chairs made from Jati wood. The cutting department supplies the legs for chair to the assembly department. One chair uses 4 legs to support the chair. The cutting department can cut enough chairs leg to make 50 chairs per day. The assembly department produces 23 chairs per day. The company operates 250 days per year. Estimated setup cost is RM 60. Annual holding cost is RM 6 per chair.
Calculate the
- Optimal batch size
- Maximum inventory level
- Production time
- Number of orders
- Holding cost
- Ordering cost
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