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Calculate the economic lot els

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Question - A company has a consumption of 40 units per day of product. The products are manufactured in an external plant at the rate of 500 units per week, in days of 9 hours a day from Monday to Friday. Whenever an order is needed, it is necessary to issue an order to prepare and tune the machines, the time to issue the order from the factory to the supplier is 2 days and the time it takes the supplier to dispatch is 5 working days. The average cost of issuing an order is $2400.

Annual demand is: 11,600

Calculate the economic lot, ELS.

Reference no: EM133000846

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