Calculate the economic manufacturing quantity to minimize


Calculate the economic manufacturing quantity to minimize the total annual inventory cost for the following situation:

Annual demand = 100,000 units per year

Daily production rate = 450 units per day

Workdays per year = 250 days

Setup cost = $300

Annual inventory holding cost = $1.20 per unit (Hint: this is kC)

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Operation Management: Calculate the economic manufacturing quantity to minimize
Reference No:- TGS02524811

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