Determine the economic run quality

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Reference no: EM131799824

The Dine Corporation is both a producer and a user of brass couplings. The firm operates 200 days a year and uses the couplings at a steady rate of 75 per day. Couplings can be produced at a rate of 100 per day. Annual storage cost is $1.5 per coupling, and machine setup cost is $50 per run.

(1) Determine the economic run quality

(2) How many runs per year will there be?

(3) Compute the maximum inventory level

(4) Determine the length of the pure consumption portion of the cycle

Reference no: EM131799824

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