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Charles Cycles produces bicycles and tricycles. The setup cost when switching production from one to the other is $2,200. On average, retail customers order 130 tricycles per day (consider a 250-day year). The dally production rate for tricycles is 720 units. Unit cost of a tricycle is $62 and the company has determined inventory carrying cost to be 15 percent. What should the production order quantity be? (Round up your answer to the next whole number.) Production order quantity units

Charles Cycles produces bicycles and tricycles. The setup cost when switching production from one to the other is $2,200. On average, retail customers order 130 tricycles per day (consider a 250-day year). The dally production rate for tricycles is 720 units. Unit cost of a tricycle is $62 and the company has determined inventory carrying cost to be 15 percent. What should the production order quantity be? (Round up your answer to the next whole number.) Production order quantity units

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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Problem 7-28 (Algo) Charles Cycles produces bicycles and tricycles. The setup cost when switching production from one to the other is $2.200. On average, retail customers order 130 tricycles per day (consider a 250-day year). The daily production rate for tricycles is 720 units. Unit cost of a tricycle is $62 and the company has determined inventory carrying cost to be 15 percent. What should the production order quantity be? (Round up your answer to the next whole number.) Production arder quantly units nces
Transcribed Image Text:Problem 7-28 (Algo) Charles Cycles produces bicycles and tricycles. The setup cost when switching production from one to the other is $2.200. On average, retail customers order 130 tricycles per day (consider a 250-day year). The daily production rate for tricycles is 720 units. Unit cost of a tricycle is $62 and the company has determined inventory carrying cost to be 15 percent. What should the production order quantity be? (Round up your answer to the next whole number.) Production arder quantly units nces
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