For below three products, you were asked to determine the
economic production quantities. They use the same equipment. For
each product, unit cost is based on $5 per material, $5 per
production and $5 per overhead costs. Assume that company operates
216 days per year. The following table has the needed
information:
Product
Annual Demand ($)
Annual Production (units)
Holding cost ($ per unit per year)
Set up cost ($) per order
A
$350,000
25,000
$10
$35
B
$175,000
12,000
$5
$15
C
$125,000
10,000
$3
$20
For below three products, you were asked to determine the economic production quantities. They use the same equipment. F
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