Economic production quantity

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Reference no: EM131791702

JaxMFG company produces an electronic product for which the annual demand is 20,000 units. Production averages 100 units per day, while demand is 40 units per day. Holding costs are $2.00 per unit per year, and setup cost is $400. Show your work (10 points)

(a) What is the Economic Production Quantity (EPQ) for this case?

(b) What is the maximum inventory level?

(c) How many order cycles (= production runs) are there per year? (The production runs should be a positive integer for production planning.)

(d) What are the total annual holding cost and setup cost (=ordering cost)

Reference no: EM131791702

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