Lenovo uses 450000 hard disks per year to mount in the, Ask an Expert

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Lenovo uses 450,000 hard disks per year to mount in the laptops they like to sell. The manufacturer receives the hard disks from a supplier at a rate of 1900 per day. Carrying cost per hard disk is $2/year and setup cost for a production run is $450. The plant operates 300 days per year.

a) Compute the economic production quantity.

b) Compute the maximum inventory.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M93127849

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