Computing annual setup costs without holding cost

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Reference no: EM1339796

Q1) A production order quantity problem has annual demand = 3000, daily demand rate = 10, and daily production rate = 50. The production order quantity for this problem is approximately 612 units. The annual setup costs for this problem are approximately:

Holding cost info is not provided with this question, it asks to solve the question without it.

a) $4.90
b) $50
c) $300
d) $490
e) $980

Choose the right answer: Explain how you have arrived at that answer.

Reference no: EM1339796

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