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A manufacturing company produces furniture products. The company operates 300 working-day per year. It has orders for about 12,000 products per year. Its factory has the capability of producing 100 per day. Setting up the product production costs SR 50 The cost of each furniture product is SR 1 The holding cost is SR 0.10 per product per year.   What is the optimal size of the production run?

A manufacturing company produces furniture products. The company operates 300 working-day per year. It has orders for about 12,000 products per year. Its factory has the capability of producing 100 per day. Setting up the product production costs SR 50 The cost of each furniture product is SR 1 The holding cost is SR 0.10 per product per year.   What is the optimal size of the production run?

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
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Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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A manufacturing company produces furniture products. The company operates 300 working-day per year. It has orders for about 12,000 products per year. Its factory has the capability of producing 100 per day. Setting up the product production costs SR 50 The cost of each furniture product is SR 1 The holding cost is SR 0.10 per product per year.

 

What is the optimal size of the production run?

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