OU812 produces donuts for which the annual demand is 100,000 units. Holding costs are $0.05 per unit per day, and the setup costs are $200. If they wish to produce the donuts following an EOQ model, what lot size should be used? What is the average inventory level? How many production cycles are there per year? How much does following this EOQ policy cost the firm each year?

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The Answer of OU812 produces donuts for which the annual demand is 100,000 units. Holding costs are $0.05 per unit per day, and the setup costs are $200. If they wish to produce the donuts following an EOQ model, what lot size should be used? What is the average inventory level? How many production cycles are there per year? How much does following this EOQ policy cost the firm each year?

OU812 Produces Donuts for Which the Annual Demand Is 100,000