Calculate the economic production quantity for mulch

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Iron Hill Pallet Company produces hardwood mulch by grinding used pallets. The company’s grinder can produce 15 cubic yards of mulch per hour and operates the grinder 24 hours per day for 250 days per year. The annual demand for mulch is 43,000 cubic yards. It costs Iron Hill $200 to setup the grinder for production. It costs iron hill $20 to produce a cubic yard of mulch, and they use a factor of 11% to calculate the inventory holding cost. Calculate the economic production quantity for mulch.

Reference no: EM132290486

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