What is the average annual holding? cost

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Reference no: EM131275782

High-Tech manufacturing company makes audio? micro-processor for asembly into different microcomputers. The company operates its production facility 300 days per year. It has demand for its? micro-processors about 11,900 units per year and has the capability of producing 105 units per day. Setting up the production process costs $51 per set-up. Each processor costs ?$0.95 per unit. The holding cost is $0.10 per unit per year.

a) What is the optimal size of the production? run? ___ (round to nearest whole number)

b) What is the average annual holding? cost? $____ (round to two decimal places)

c) What is the average annual setup? cost? ?$____ (round to two decimal places)

d) What is the total annual inventory? cost, including the cost of the? products? $____ (round to two decimal places)

Reference no: EM131275782

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