Nathan manufacturing makes hubcaps for the retail, Operation Management

Nathan manufacturing makes hubcaps for the retail

Nathan Manufacturing makes hubcaps for the retail automotive market. They forecast daily demand at 12 units per day for 250 day/year operation. Their production process has daily production of 48 hubcaps per day. The setup cost per production run is 75$. The holding cost is 1$/unit per year. A) What is the production order quantity? B) What is the maximum inventory level? C) What are the total annual holding and setup costs?

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Operation Management: Nathan manufacturing makes hubcaps for the retail

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