The Assumptions of the Production Order Quantity Model Are Met

question 6

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 10 and the daily production rate is 100.What is the production order quantity for this problem?

• A)139
• B)174
• C)184
• D)365
• E)548

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