What is the average holding cost per year

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D's Manufactuting in Haywood, CA makes flashing lights for toys. They operate their production facility 300 days a year. It has orders for about 12,000 flashing lights per year, and has the capacity of producing 100 per day. Setting up light production costs $50. Cost of each light is $1. The holding cost is $0.10 per light per year.

a. What is the optimal size of the production run?

b. What is the average holding cost per year?

c. Average setup cost per year?

d. What is the total cost per year, including the cost of the lights?

Reference no: EM131033370

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