If the annual demand is reduced to 8,000 units, the set-up costs increased to $120, inventory carrying cost increased to $0.60 per unit per year and the demand during the production period is maintained at 60 units per day and 80 units can be manufactured daily, calculate a. The optimum production quantity (Q*) per production run (or per production lot). b. The length of each production run.

College Algebra (MindTap Course List)
12th Edition
ISBN:9781305652231
Author:R. David Gustafson, Jeff Hughes
Publisher:R. David Gustafson, Jeff Hughes
Chapter6: Linear Systems
Section6.8: Linear Programming
Problem 4SC: If the cost of each Robust tablet increases to 75 c and the cost of each Vigortab increases to 80 c...
icon
Related questions
Question

help please

If the annual demand is reduced to 8,000 units, the set-up costs increased to $120, inventory carrying cost increased
to $0.60 per unit per year and the demand during the production period is maintained at 60 units per day and 80
units can be manufactured daily, calculate
а.
The optimum production quantity (Q*) per production run (or per production lot).
b.
The length of each production run.
The number of production runs per year.
C.
Transcribed Image Text:If the annual demand is reduced to 8,000 units, the set-up costs increased to $120, inventory carrying cost increased to $0.60 per unit per year and the demand during the production period is maintained at 60 units per day and 80 units can be manufactured daily, calculate а. The optimum production quantity (Q*) per production run (or per production lot). b. The length of each production run. The number of production runs per year. C.
Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
College Algebra (MindTap Course List)
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning