The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 20 and the daily production rate is 100. What is the production order quantity for this problem?
A) 174
B) 195
C) 184
D) 365
E) 548

Question

Quizplus · Accepted Answer

The Answer of The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 20 and the daily production rate is 100. What is the production order quantity for this problem?
A) 174
B) 195
C) 184
D) 365
E) 548

The Assumptions of the Production Order Quantity Model Are Met