Develop a level material use schedule. Calculate the setup
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Question 22: A firm wants to develop a level material use schedule based on the following data. What should be the setup cost?
a) $0.45
b) $4.50
c) $45
d) $450
e) $500
The provided data is:
Desired lot size: 60
Annual demand: 40,000
Holding cost: $20 per unit per year
Daily production rate: 320
Work days per year: 250
Please select the right answer and show how you have calculated it.
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Solution Summary
The expert develops a level material used to schedule. The calculations are set up.
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Daily Demand = 40,000 / 250 = 160 Units
EPQ = SQRT [ 2 X Demand ...
Education
- BE, Bangalore University, India
- MS, University of Wisconsin-Madison
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