A computer production facility has a daily demand rate of 6 and a daily production rate of 20. Set up costs are $100 per order. They have calculated that the economic order quantity is 250 computers. Given this info, what is the best economic production quantity?

A computer production facility has a daily demand rate of 6 and a daily production rate of 20. Set up costs are $100 per order. They have calculated that the economic order quantity is 250 computers. Given this info, what is the best economic production quantity?

Managerial Economics: A Problem Solving Approach

5th Edition

ISBN:9781337106665

Author:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Publisher:Luke M. Froeb, Brian T. McCann, Michael R. Ward, Mike Shor

Chapter3: Benefits, Costs, And Decisions

Section: Chapter Questions

Problem 8MC

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A computer production facility has a daily demand rate of 6 and a daily production rate of 20.
Set up costs are $100 per order. They have calculated that the economic order quantity is 250
computers. Given this info, what is the best economic production quantity?

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