Question - givensetup cost for a production equipment-625, Ask an Expert

Economics

Question - Given:

Setup Cost for a production equipment-$625/ setup

New setup cost -$25 per setup for a lot size of 100.

Based on the data given above, answer the following questions.

i. What was the lot size for the old setup?

ii. What will be the setup cost for an economical lot size of 10?

iii. If the demand rate is 6,000 units, what was the inventory carrying cost per unit per year with the old setup?

iv. If the inventory carrying cost per unit per year is reduced to $12, what will be the total inventory carrying cost/year with the new setup cost of $25?

v. What will be the setup cost per year with the new setup?

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Macroeconomics, Economics

Category:- Macroeconomics
Reference No.:- M93126360

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