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A company produces 4800 parts per day and sells them at approximately half of that rate. The set-up cost is Rs.1000 and carrying cost is Rs.5 per units. The annual demand is 480,000 units. Find:
(a) Optimal lot size
(b) Number of production run that should be scheduled per year
(c) Length of each production run
This would mean that in year six, the cash flow would be $800,000. However, it is also projected for Project B that in years three and four there will be an additional capital outlay of $100,000 for each year. Compute the NPV, IRR, Payback for bot..
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