What is the economic batch quantity? for the firm

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Reference no: EM131775784

A fruit canning plant has a single line for three different fruit types. Demand for each type of tin is reasonably constant at 49000 per month? (a month has 160 production? hours). The tinning process rate is 800 per hour and it takes 1 hour to clean and? re-set between different runs. The cost of these changeovers ?(Co?) is calculated at ?£250 per hour.? Stock-holding is calculated at ?£0.24 per tin per month. What is the economic batch quantity? (EBQ) for the firm?

Reference no: EM131775784

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