A valve manufacturer plans to produce 25,000 units of a special valve next year. The production rate is 100 valves per day, and the demand rate is 80 valves per day. The setup cost is $ 50.00 per run and the holding costs are $ 4.00 per unit per year. R=25,000 units H=$4.00 C=$50 p=100 valves D=80 valves Assuming backorder is permitted, if the lead time is 5 working days, what is the maximum number of units in backorder?

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ISBN:9781337406659
Author:WINSTON, Wayne L.
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A valve manufacturer plans to produce 25,000 units of a special
valve next year. The production rate is 100 valves per day, and the
demand rate is 80 valves per day. The setup cost is $ 50.00 per run
and the holding costs are $ 4.00 per unit per year.
R=25,000 units
H=$4.00
C=$50
p=100 valves
D=80 valves
Assuming backorder is permitted, if the lead time is 5 working days,
what is the maximum number of units in backorder?
Transcribed Image Text:A valve manufacturer plans to produce 25,000 units of a special valve next year. The production rate is 100 valves per day, and the demand rate is 80 valves per day. The setup cost is $ 50.00 per run and the holding costs are $ 4.00 per unit per year. R=25,000 units H=$4.00 C=$50 p=100 valves D=80 valves Assuming backorder is permitted, if the lead time is 5 working days, what is the maximum number of units in backorder?
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