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Find the optimum number of units to be produced in one batch

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Reference no: EM13974115

1. A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 60 units per day. The setup cost for a production run is $ 125.00. The cost of holding is $ 4.00 per unit per year. The demand for the item is continuous and constant and is 3,900 units per year. The demand occurs only when the company is operating, that is, 5 days a week for 52 weeks. Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer. 

Reference no: EM13974115

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