November 30, 2015

Homework Help: Advanced Production

Posted by D.Martin on Thursday, April 26, 2007 at 10:49am.

Montegut Manufacturing produces a product for which the annual demand is 10,000. Production averages 100 per day, while demand is 40 per day. Holding costs are $1.00 per unit per year;set-up costs $200.00. If they wish to produce this product in economics batches, what size batch should be used? What is the maximum inventory level? How many order cycles are there per year? How much does management of this good in inventory cost the firm each year?

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