A product has annual demand of 100,000 units.The plant manager wants production to follow a four-hour cycle.Based on the following data,what setup cost will enable the desired production cycle? d = 400 per day (250 days per year),p = 4000 units per day,H = $40 per unit per year,and Q = 200 (demand for four hours,half a day).
A)$2.00
B)$7.20
C)$18.00
D)$64.00
E)$1,036.80

Question

Quizplus · Accepted Answer

The Answer of A product has annual demand of 100,000 units.The plant manager wants production to follow a four-hour cycle.Based on the following data,what setup cost will enable the desired production cycle? d = 400 per day (250 days per year),p = 4000 units per day,H = $40 per unit per year,and Q = 200 (demand for four hours,half a day).
A)$2.00
B)$7.20
C)$18.00
D)$64.00
E)$1,036.80

A Product Has Annual Demand of 100,000 Units