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[item #4] A company uses the production run model to determine the number of t-shirts that must be produced per production run. The cost per t-shirt is P150. The holding cost is P5per unit per year and the cost of setting up the production line is Php1,500 per setup. The production rate is 250 per day and the dailt demand rate is 100 units. The optimal production quantity per production run is P5000 units. What is the length of each production run in days? a. 20 days b. 40 days c. 50 days d. 30 days

[item #4] A company uses the production run model to determine the number of t-shirts that must be produced per production run. The cost per t-shirt is P150. The holding cost is P5per unit per year and the cost of setting up the production line is Php1,500 per setup. The production rate is 250 per day and the dailt demand rate is 100 units. The optimal production quantity per production run is P5000 units. What is the length of each production run in days? a. 20 days b. 40 days c. 50 days d. 30 days

Practical Management Science
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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[item #4] A company uses the production run model to determine the number of t-shirts that must be produced per production run. The cost per t-shirt is P150. The holding cost is P5per unit per year and the cost of setting up the production line is Php1,500 per setup. The production rate is 250 per day and the dailt demand rate is 100 units. The optimal production quantity per production run is P5000 units. What is the length of each production run in days?

a. 20 days

b. 40 days

c. 50 days

d. 30 days

Expert Solution
Step 1

Given :

Optimal Production quantity (EPQ) = 5000

Production rate per day (p) = 250

steps

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