The annual demand for a certain part is 2000 units the part, Management Theories

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The annual demand for a certain part is 2000 units the part

Question: The annual demand for a certain part is 2000 units. The part is produced in a batch model manufacturing system. Annual holding cost per piece is $3.00. It takes 2 hr to set up the ma-chine to produce this part, and cost of system downtime is $150/hr. Determine

(a) the most economical batch quantity for this part and

(b) the associated total inventory cost.

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Management Theories: The annual demand for a certain part is 2000 units the part

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Management Theories: The annual demand for a certain part is 2000 units the part

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