Problem #2- Brown Manufacturing-Modified, from textbook page #198 If the annual demand is reduced to 8,000 units, the set-up costs increased to $120, Inventory carrying cost Increased to $0.60 per unit per year and the demand during the production period is maintained at 60 units per day and 80 unlts can be manufactured daily, calculate The optimum production quantity (Q*) per production run (or per production lot). b. ( he length of each production run. c. ( The number of production runs per year. Page 2 of 4
Problem #2- Brown Manufacturing-Modified, from textbook page #198 If the annual demand is reduced to 8,000 units, the set-up costs increased to $120, Inventory carrying cost Increased to $0.60 per unit per year and the demand during the production period is maintained at 60 units per day and 80 unlts can be manufactured daily, calculate The optimum production quantity (Q*) per production run (or per production lot). b. ( he length of each production run. c. ( The number of production runs per year. Page 2 of 4
Chapter19: Pricing Concepts
Section: Chapter Questions
Problem 6DRQ
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![Problem #2- Brown Manufacturing-Modified, from textbook page #198
If the annual demand is reduced to 8,000 units, the set-up costs increased to $120, inventory carrying cost increased
to $0.60 per unit per year and the demand during the production period is maintained at 60 units per day and 80
units can be manufactured daily, calculate
а.
The optimum production quantity (Q*) per production run (or per production lot).
b. (
ne length of each production run.
с. (
The number of production runs per year.
Page 2 of 4
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Transcribed Image Text:Problem #2- Brown Manufacturing-Modified, from textbook page #198
If the annual demand is reduced to 8,000 units, the set-up costs increased to $120, inventory carrying cost increased
to $0.60 per unit per year and the demand during the production period is maintained at 60 units per day and 80
units can be manufactured daily, calculate
а.
The optimum production quantity (Q*) per production run (or per production lot).
b. (
ne length of each production run.
с. (
The number of production runs per year.
Page 2 of 4
Scanned with CamScanner
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