Question
The dedicated production line with the following figures Production setup cost ($/setup) Holding cost ($ for each PCS/year) Demand (PCS/year) Capacity (PCS/year) 100 0.90 7,000
| Production setup cost ($/setup) | Holding cost ($ for each PCS/year) | Demand (PCS/year) | Capacity (PCS/year) |
| 100 | 0.90 | 7,000 | 34,000 |
a. Determine: i) The optimal production quantity ii) The total annual inventory cost iii) The number of production runs per year iv) The maximum inventory level. b. If it has only enough storage space to hold a maximum of 93 PCS in inventory, how will that affect total annual inventory costs?
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Quantitative Methods For Business
Authors: David Anderson, Dennis Sweeney, Thomas Williams, Jeffrey Cam
11th Edition
978-0324651812, 324651813, 978-0324651751
