What is maximum inventory level-economic production quantity

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Reference no: EM131473402

Montegut Manufacturing produces a product for which the annual demand is 10,000 units. Production averages 100 units per day, while demand is 40 units per day. Holding costs are $2.00 per unit per year, and setup cost is $200.00.

What is the Economic Production Quantity (EPQ)?

What is the maximum inventory level?

How many order cycles (= production runs) are there per year?

What are the total annual holding and setup costs (=ordering costs)?

Reference no: EM131473402

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