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Consider a company that makes one component in house so that the component gradually flows into the assembly line for us
Posted: Fri May 20, 2022 5:43 am
by answerhappygod
- Consider A Company That Makes One Component In House So That The Component Gradually Flows Into The Assembly Line For Us 1 (402.2 KiB) Viewed 102 times
Consider a
company that makes one component in house so that the component gradually flows into the assembly line for use. The annual demand for the component is 30,000 units and the production cost is $10 per unit. The
company incurs a fixed cost of $72 whenever it starts a new batch of production. The inventory holding cost is $3 per unit per year. The production rate is 800 units per week. Assume 50 weeks a year. What is the economic production quantity (EPO) for the component? 1000 1200 2000 O 1500 2400