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Johnson Plastics sells and makes, among numerous other things, specialty plastic display cases for retail stores. Johnsons expected demand for display cases is 1,000 units, and average every day demand is 3 units. The production procedure is most efficient when 12 units per day are manufactured at the cost of $119 per unit. Setup cost is $39. Inventory carrying cost at Johnson is determined to be 8 percent yearly.

1. What is best production order quantity? In units

2. How many days is required production run

Project Management, Management Studies

  • Category:- Project Management
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