Find the optimum number of units to be produced


A manufacturing company sells its products directly to customers and operates 5 days a week, 52 weeks a year. The production department of this company can produce at the rate of 60 units per day. The setup cost for a production run is $ 125.00. The cost of holding is $ 4.00 per unit per year. The demand for the item is continuous and constant and is 3,900 units per year. Find the optimum number of units to be produced in one batch (economic production quantity). Round the number to nearest integer.

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Operation Management: Find the optimum number of units to be produced
Reference No:- TGS076173

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