An auto parts maker in Indonesia produces one of the spare parts brands with a daily production rate of 200 units. The company has forecast that the annual demand (D) will be 12,500 units over the next year and the company operates 250 business days per year. The cost of preparing an order is $30 per order, and the cost of maintaining one unit per year is $2. What is the optimal quantity to produce?

An auto parts maker in Indonesia produces one of the spare parts brands with a daily production rate of 200 units. The company has forecast that the annual demand (D) will be 12,500 units over the next year and the company operates 250 business days per year. The cost of preparing an order is $30 per order, and the cost of maintaining one unit per year is $2. What is the optimal quantity to produce?

Name: An auto parts maker in Indonesia produces one of the spare parts brand
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Description: An auto parts maker in Indonesia produces one of the spare parts brands with a daily production rate of 200 units. The company has forecast that the annual demand (D) will be 12,500 units over the next year and the company operates 250 business days

MARKETING 2018

19th Edition

ISBN:9780357033753

Author:Pride

Publisher:Pride

Chapter15: Retailing, Direct Marketing, And Wholesaling

Section15.1: L.l.bean: Open 24/7, Click Or Brick

Problem 3VC

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