Charles cycles produces bicycles and tricycles the setup, Ask an Expert

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Charles Cycles produces bicycles and tricycles. The setup cost when switching production from one to the other is $1,400. On average, retail customers order 190 tricycles per day (consider a 250-day year). The daily production rate for tricycles is 640 units. Unit cost of a tricycle is $68 and the company has determined inventory carrying cost to be 15 percent.

What should the production order quantity be? (Round up your answer to the next whole number.)

Production order quantity units

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91763987

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