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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