Homework Answers
Answer:
Annual demand, D = 20,968 units
daily production capacity, d = 1000 units per day
usage rate, p = 200 per day
Carrying cost, H = $0.20 per unit per year
setup cost = $85 per batch
QP* = 
= 
= 4221.71 * 1.12
= 4720.02 units
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