# The assumptions of the production order quantity model are met in a situation where annual demand is

3 answers

###### Question:

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. what is the number of production runs for this problem?

## Answers

Number of production runs will be 184

Explanation:

We have given setup cost K = $50

Demand = 3650 units

Holding cost h = $12 per unit per year

Daily demand rate = 10

And daily production rate = 100

So [tex]x=\frac{10}{100}=0.1[/tex]

We know that production order quantity is given as\

[tex]=\sqrt{\frac{2KD}{h}\times (1-x)}=\sqrt{\frac{2\times 50\times 3650}{12}\times (1-0.1)}=184[/tex]

So the number of production runs will be 184

Iguess you must be confident and have the qualifications do this job you go

The statement is true

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