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The Divinity Corporation produces silver-plated crosses for its assembly of Rosaries. The firm operates 220 days a year and uses the crosses at a steady
The Divinity Corporation produces silver-plated crosses for its assembly of Rosaries. The firm operates 220 days a year and uses the crosses at a steady rate of 500 per day. Crosses can be produced at a rate of 4000 per day. Annual storage cost is $4 per cross, and the machine setup cost is $120 per run.
a) determine the economic run quantity
b) how many runs per year will there be?
c) what is the average inventory on hand?
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