Explain and setting up to produce a batch of products

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Reference no: EM1362130

Blessings Electronics Ltd is in the business of manufacturing and trading electronic memory modules. Product is made to stock and sold as per the market demand. Annual demand rate for MC1 product model used in cameras is 12000 units. One unit of the product costs $ 10 and inventory holding cost rate is 24% / year. Setting up to produce a batch of products requires changeover of equipment which takes 4 hour. The cost of equipment down time and labor is $ 100/hr. Determine for this product case:

Reference no: EM1362130

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