Calculate economic production quantity

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Reference no: EM132290385

Heywood Products manufactures plastic fuel tanks for use in chain saws. The annual demand for these plastic fuel tanks is 64,000 units. Heywood Products can produce 90 plastic fuel tanks per hour and the company works an 10 hour day for 200 days each year. The cost to set up for production of the plastic fuel tanks is $226. Each plastic fuel tank costs $4.87. The company uses a rate of 20% of the item cost to determine the annual holding cost. Calculate the economic production quantity.

Reference no: EM132290385

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