Important information about Inventory models:Production order quantity
A production order quantity problem has annual demand = 3000, daily demand rate = 10, and daily production rate = 50. The production order quantity for this problem is approximately 612 units. The annual setup costs for this problem are approximately:
Holding cost info is not provided with this question, it asks to solve the question without it.
a) $4.90
b) $50
c) $300
d) $490
e) $980