A computer manufacturer can produce laptops at the rate of 100 per day.The manufacturer supplies its laptops to various computer retail outlets at a rate 65 per day.Set up cost for a production run is $500.Carrying cost is $125 per laptop a year.Assume the manufacturer operates 300 days a year.
a.What is the optimal production run size?
b.What is the minimum total annual cost for carrying and set up?
c.What is the length of a production run?

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The Answer of A computer manufacturer can produce laptops at the rate of 100 per day.The manufacturer supplies its laptops to various computer retail outlets at a rate 65 per day.Set up cost for a production run is $500.Carrying cost is $125 per laptop a year.Assume the manufacturer operates 300 days a year.
a.What is the optimal production run size?
b.What is the minimum total annual cost for carrying and set up?
c.What is the length of a production run?

A Computer Manufacturer Can Produce Laptops at the Rate of 100