Eoq with a finite production rate: example4 a ball bearing manufacturer produces an item with a production capacity of 960 units per eight-hour shift. the annual demand of the item is 60,000 units. preparation costs are $45 each time an order is placed; the carrying cost rate is $0.30 per dollar of inventory per year and the units cost $2 each. assuming that the plant works one shift a day, five days a week and 50 weeks a year, what is the optimal production order quantity? ans: 3.464 remember that the production rate should be in the same time units used for everything else!