Think of an enterprise that produces “C” kind fire extinguishers. They manufacture 30,000 extinguishers per year. Each extinguisher requires a handle. Suppose that the storage cost is 1.5 dollars per handle, the production preparation cost is 150 dollars and the daily production ratio is 300. A labour year is 300 days. Which will the optimal amount of production be?

Think of an enterprise that produces “C” kind fire extinguishers. They manufacture 30,000 extinguishers per year. Each extinguisher requires a handle. Suppose that the storage cost is 1.5 dollars per handle, the production preparation cost is 150 dollars and the daily production ratio is 300. A labour year is 300 days. Which will the optimal amount of production be?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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