A manufacturing firm has a contract to supply lathe chucks as per the following schedule. The product made during a month will be supplied at the end of the month. The setup cost is Rs. 1000/-, while the inventory carrying cost is Re. 1/- per piece per month. In which month should the batches be produced and of what size, so that the total of setup and inventory carrying cost arc minimized?
|
Month
|
Number of items
|
|
January
|
100
|
|
February
|
200
|
|
March
|
300
|
|
April
|
400
|
|
May
|
400
|
|
June
|
300
|