A Product Has an Annual Demand of 3600 Units

question 153

Short Answer

A product has an annual demand of 3600 units. Unit cost for this product is $3. Set up cost is $20 and the inventory carrying rate as a percent of the unit cost is 25%. The product is produced in-house where the daily production rate is 50 units. Assume 360 working days per year and determine the economic production quantity.

---

Definitions:

Q-Sort

An assessment procedure in which test takers distribute personal descriptions along a continuum.

Self-actualized

Describes the achievement of one’s fullest potential through creativity, independence, spontaneity, and a grasp of the real world.

Carl Rogers

An influential American psychologist known for developing client-centered therapy, emphasizing the importance of the individual's personal growth and self-understanding.

Satisfying State

A condition of fulfillment or contentment in an individual's life, often achieved when personal needs or desires are met.