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Question: Johnson Plastics makes and sells, among many other things, specialty plastic display cases for retail stores. Johnson's expected demand for the display cases is 1,000 units, and average daily demand is 4 units. The production process is most efficient when 16 units per day are produced at a cost of $100 per unit. Setup cost is $50. Inventory carrying cost at Johnson is determined to be 10 percent annually. What is the best production order quantity, and how many days is a required production run?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92757860

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