Electronics Company produced 300 transistors per day, which go into inventory. It supplies 150 transistors per day to Oman Radio. The annual demand is 37,500. The inventory holding cost is $0.25 per transistor per year and the setup cost per production run is $200. Find: А. EOQ В. Production run length = Q*/p %3D С. Number of production runs per year = D/Q*
Electronics Company produced 300 transistors per day, which go into inventory. It supplies 150 transistors per day to Oman Radio. The annual demand is 37,500. The inventory holding cost is $0.25 per transistor per year and the setup cost per production run is $200. Find: А. EOQ В. Production run length = Q*/p %3D С. Number of production runs per year = D/Q*
Chapter18: The Management Of Accounts Receivable And Inventories
Section: Chapter Questions
Problem 20P
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Question
![Electronics Company produced 300 transistors
per day, which go into inventory. It supplies 150
transistors per day to Oman Radio. The annual
demand is 37,500. The inventory holding cost is
$0.25 per transistor per year and the setup
cost per production run is $200.
Find:
А.
ЕOQ
В.
Production run length = Q*/p
С.
Number of production runs per year =
D/Q*
Maximum inventory level](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fdb4fa5e3-cde4-4eed-8f08-9647578e2ad6%2Fff8ebcea-1877-4973-b094-664cda61fb6d%2F4mvy46f.bmp&w=3840&q=75)
Transcribed Image Text:Electronics Company produced 300 transistors
per day, which go into inventory. It supplies 150
transistors per day to Oman Radio. The annual
demand is 37,500. The inventory holding cost is
$0.25 per transistor per year and the setup
cost per production run is $200.
Find:
А.
ЕOQ
В.
Production run length = Q*/p
С.
Number of production runs per year =
D/Q*
Maximum inventory level
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