3 company manufacturing eprom experienced a demand of

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Unformatted text preview: .3 Company manufacturing EPROM experienced a demand of 2500units/year. Production rate is 10000units/year. It is estimated that each production run costs $50 to initiate, each unit costs $2 to manufacture and the holding cost is based on 30% interest rate. Determine EMQ, the length of each production run, annual cost for holding and setup? What is the max. on hand inventory? hand 12 Quantity Discount Models All Units Discounts: The discount is applied to all of the units in the order. Gives rise to an order cost function such as; such Quantity Discount Models Incremental Discounts: The discount is applied only to the number of units above the breakpoint. Gives rise to an order cost function such as; 13 Example 4.4 So...
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This document was uploaded on 03/23/2014.

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