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The Dine Corporation is a producer of specialized lenses to be mounted on cameras for teeth photography. The firm operates 220 days per year, and the average sale of lenses is 50 per day. Lenses can be produced 400 per day. Annual storage is $20 per lenses and machine setup is $350 per run.

a. Determine the economic run quantity.

b. Approximately how many runs per year will there be?

c. Compute the maximum inventory level.

d. Determine the length of the production run and the length of the inventory cycle.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91641772

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