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Mantis® produces a garden composter for which the annual US demand is 13,500 units. Production rate averages 125 per day, while demand is 54 per day. Holding costs are $2.30 per unit per year; set-up costs $194.00.
a. If Mantis wants to produce in economic batches, what batch size should be used?
b. What is the maximum inventory level?
c. How many order cycles are there per year?
d. How long does it take to produce each batch?
e. How much is the total inventory management cost each year?
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