Consider a Product with a Daily Demand of 400 Units,a

question 60

Essay

Consider a product with a daily demand of 400 units,a setup cost per production run of $100,a monthly holding cost per unit of $2.00,and an annual production rate of 292,000 units.The firm operates and experiences demand 365 days per year.Suppose that management mistakenly used the basic EOQ model to calculate the batch size instead of using the POQ model.How much money per year has that mistake cost the company?

---

Definitions:

Nonhomologous Chromosome

Chromosomes that do not pair or share a similar structure or gene sequence with each other during cell division.

Prader-Willi Syndrome

A genetic disorder that causes obesity, intellectual disability, and shortness in height among other symptoms.

Angelman Syndrome

A genetic disorder causing developmental disabilities, seizures, unique facial appearances, and frequent laughter or smiling.

Chromosome 15

One of the 23 pairs of human chromosomes, carrying genes that can be involved in various genetic disorders and characteristics.