9. Suppose that a product with an annual demand of 2400 units, a setup cost per production run of $8, and a holding cost

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9 Suppose That A Product With An Annual Demand Of 2400 Units A Setup Cost Per Production Run Of 8 And A Holding Cost 1 (152.93 KiB) Viewed 17 times

9. Suppose that a product with an annual demand of 2400 units, a setup cost per production run of $8, and a holding cost of $1 per unit per year. With 200 working days in a year, consider the following ordering plans: (a) order 600 units once each quarter and all 600 units will be delivered in a single day (b) order 200 units once each month and all 200 units will be delivered in a single day (c) order 1200 units each 6-month, and each order will be delivered over a period of 60 days (i.e., p=20 units/day) i) Calculate the annual holding and setup costs associated with each plan. ii) Is there another plan that is cheaper (in total costs) than any of these? If so, please find the order quantity. Otherwise, give the reasons why there is no such plan.