HP produces its multimedia notebook computer on a production line that has an annual capacity of 10000 units. HP estimates the annual demand for this model at 5000 units. The cost to set up the production line is $2200, and the annul holding cost is $25 per unit. Show steps to find: a. What is the optimal production lot size? b. How many production runs should be made each year? c. What is the total inventory cost?d. What is the cycle time?

HP produces its multimedia notebook computer on a production line that has an annual capacity of 10000 units. HP estimates the annual demand for this model at 5000 units. The cost to set up the production line is $2200, and the annul holding cost is $25 per unit. Show steps to find: a. What is the optimal production lot size? b. How many production runs should be made each year? c. What is the total inventory cost?d. What is the cycle time?

Name: HP produces its multimedia notebook computer on a production line that
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Description: HP produces its multimedia notebook computer on a production line that has an annual capacity of 10000 units. HP estimates the annual demand for this model at 5000 units. The cost to set up the production line is $2200, and the annul holding cost is

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter3: Introduction To Optimization Modeling

Section3.8: A Multiperiod Production Model

Problem 22P

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