Determine optimal order quantity total annual inventory cost

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For a company, the annual demand is 8000 units. The annual production rate is 32,000 units. Setup costs are $200 each time and inventory holding cost rate is 25% per year. The production set up time is 3 days and there are 250 working days in a year. Cost of producing a unit is $11.00

a. Determine the optimal order quantity (0 decimal points), the total annual inventory cost, the number of production runs per year, the length of the production run, and the maximum inventory level.

Reference no: EM132264542

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