JaxMFG company produces an electronic product for which the annual demand is 20,000 units. Production averages 100 units per day, while demand is 40 units per day. Holding costs are $2.00 per unit per year, and setup cost is $400. Show your work (10 points)
(a) What is the Economic Production Quantity (EPQ) for this case?
(b) What is the maximum inventory level?
(c) How many order cycles (= production runs) are there per year? (The production runs should be a positive integer for production planning.)
(d) What are the total annual holding cost and setup cost (=ordering cost)