Business, 14.05.2021 22:00 goawayyounoob21

The fabrication department of ACE Manufacturing Company would like to find out the most cost effective (optimal) production order quantity per production run of a part used in its assembly department. This part has a constant annual demand of 2,000 units per year. The production rate in the fabrication department for this part is 100 units per day and the consumption rate in the assembly department for this part is 75 units per day. Setup cost in the fabrication department for this part is $5 per production run. Carrying (holding) cost for this part is $2 per unit per year. Based on these information and using the Production Run (Production Lot Size) Model, the most cost effective (optimal) production order quantity per production run (units per order) for this part is

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