You work at Pralin Plc, which produces high-quality chocolates. You make pralines using round, triangular, and square
Question:
You work at Pralin Plc, which produces high-quality chocolates. You make pralines using round, triangular, and square base plates. Since all thepralines are made on the same production line, this must be adjusted for each different shape. The following information is known to you:
The total annual demand for pralines is 7,500,000 units, comprising equal quantities of round, triangular, and square shapes. The production rateis 15,000,000 units per year, irrespective of the base-plate shape. Production of the pralines costs CHF 0.50 per unit, and the cost of capital is20%. When adjusting the system to make a different shaped praline, you record downtime of one hour, which costs the business CHF 600.
What is the EBQ for the round-shaped chocolates?
a. 109,545 units b. 189,737 units c. 424,264 units d. 367,423 units e. 533,809 units