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Home Q & A Board Other Fields Homework Help Business Management
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takemeaway takemeaway
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Posts: 766
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7 years ago
Jerry Allison is in charge of production for a small producer of plumbing supplies. The cricket model has an estimated annual demand of 12,000 units and can be produced at a production rate of 90 units per day. The company produces (and sells) the cricket 300 days per year. Setup cost to produce this model averages $22 and the item has a holding cost of $3 per unit per year. If he chooses to produce the batch size suggested by the economic production lot size (ELS) model, what is the annual cost?
A) Greater than $1000
B) Less than or equal to $900
C) Greater than $900 but less than or equal to $950
D) Greater than $950 but less than or equal to $1000
Textbook 
Operations Management: Processes and Supply Chains

Operations Management: Processes and Supply Chains


Edition: 11th
Authors:
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DreaminDreamin
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7 years ago
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takemeaway Author
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#2
7 years ago
You've been incredibly helpful to me this semester, thank you for helping
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#3
7 years ago
I took this business course last semester, happy to help
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