Asked Feb 27, 2019

What is economic production quantity?


Expert Answer

Step 1

Economic production quantity (EPQ):

  • EPQ can be termed as the quantity of a product that is required to be manufactured as a single batch.
  • It is done in such a manner so that the total cost is minimized.
  • The total cost also is inclusive of the setup costs and inventory holding costs.
  • The concept of economic production quantity was introduced ...

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