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Details of Hub Caps made by a manufacturing Firm are given below:
Annual Demand (D) = 1,000 hub caps
Setup Cost (S) = $ 10 per set up
Holding or Carrying Cost = $0.50 per hub caps per yr
Daily Production Rate (d) = 8 hub caps per day
Daily Demand Rate = 4 hub caps per day
No of Working days in a yr = 250
The number of Hub Caps that this Firm must produce to Minimize its Total Cost (TC) is:
a. 307
b. 283
c. 101
d. 142
e. 291
f. 566
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