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Produce to minimize its total cost

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Reference no: EM132394400

Details of Hub Caps made by a manufacturing Firm are given below:

Annual Demand (D) = 1,000 hub caps

Setup Cost (S) = $ 10 per set up

Holding or Carrying Cost = $0.50 per hub caps per yr

Daily Production Rate (d) = 8 hub caps per day

Daily Demand Rate = 4 hub caps per day

No of Working days in a yr = 250

The number of Hub Caps that this Firm must produce to Minimize its Total Cost (TC) is:

a. 307

b. 283

c. 101

d. 142

e. 291

f. 566

Reference no: EM132394400

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