The Assumptions of the Production Order Quantity Model Are Met

question 103

Multiple Choice

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 20 and the daily production rate is 100. What is the production order quantity for this problem?

• A) 174
• B) 195
• C) 184
• D) 365
• E) 548

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Definitions:

Flow Diagrams

Visual representations of the sequence or flow of activities or operations within a process, system, or project.

Unnecessary Micro-Motions

Small, non-value adding movements or actions performed by workers that can lead to inefficiency and waste.

People And Materials

The critical resources involved in the production processes, emphasizing the importance of efficient management of human resources and raw materials.

Work Environment

The setting, conditions, and atmosphere in which an individual performs their job, encompassing physical, social, and psychological factors.