SAT, 26.03.2021 15:10 iiheartshay
XYZ business would like to make a certain component internally. Before starting the operation, the company has gathered the following information.
The cost of preparing the equipment for production purpose is 10 Br for each run.
The annual holding cost is 2 Br per unit.
The daily inventory builds is 100 units during production period.
The company operates for 300 days in a year.
Required
What is the optimal production quantity
What is the minimum total annual inventory cost
Determine the Number of run per year
Maximum inventory
The time that it takes to consume the optimal quantity.
Answers: 3
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XYZ business would like to make a certain component internally. Before starting the operation, the c...
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