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Compute the tasks using epq model

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Reference no: EM132954793

A grocery shop that makes candles offers a scented candle, which can be produced at a rate of 36 boxes per day and used 12 boxes per day. Assume that demand is uniform throughout the year and the shop opens for 360 days. Setup cost is $15 for a run, and holding cost is $1.5 per box on a yearly basis. Please compute the following tasks using EPQ model:

(a) The economic run size

(b) The maximum inventory

(c) The total cost

Reference no: EM132954793

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