A manufacturer has to produce annually 1000 units of a product that are sold at a uniform rate during the year.The production cost for each unit is $400,and carrying costs (insurance,interest,storage,and so on)are estimated to be 5% of the value of average inventory.Set-up costs per production run are $64.Find the economic lot size.

Question

Quizplus · Accepted Answer

The Answer of A manufacturer has to produce annually 1000 units of a product that are sold at a uniform rate during the year.The production cost for each unit is $400,and carrying costs (insurance,interest,storage,and so on)are estimated to be 5% of the value of average inventory.Set-up costs per production run are $64.Find the economic lot size.

A Manufacturer Has to Produce Annually 1000 Units of a Product