Determine the economic run size


A shop that makes candles offers a scented candle, which has a monthly demand of 360 boxes. Candles can be produced at a rate of 36 boxes per day. The shop operates 20 days a month. Assume that demand is uniform throughout the month. Setup cost is $60 for a production run, and holding cost is $2 per box per month. Determine the following:

A) the economic run size

B) the maximum inventory (I-max)

C) the run time in days

Request for Solution File

Ask an Expert for Answer!!
Operation Management: Determine the economic run size
Reference No:- TGS0513762

Expected delivery within 24 Hours