Assume that a production line operates such that the production lot size model o

Question

Assume that a production line operates such that the production lot size model of is applicable. Given D = 7100 units per year, Co = $90, and Ch = $3 per unit per year. Compute the minimum cost production lot size for each of the following production rates:

a.8400 units per year ------------ Q* = ??????

b.10000 units per year ------------ Q* = ??????

c.30500 units per year ------------ Q* = ??????

d.90000 units per year ------------ Q* = ??????

If required, round your answers to the nearest whole number. Compute the EOQ recommended lot size using equation Q*= SQUARE ROOT 2DCo/Ch. If required, round your answers to the nearest whole number.

Explanation / Answer

EOQ lot size

D C0 CH Q* Lot size 8400 90 3 504000 71 10000 90 3 600000 85 30500 90 3 1830000 258 90000 90 3 5400000 761

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.