Question

A product has annual demand of 100,000 units. The plant manager wants production to follow a four-hour cycle. Based on the following data, what setup cost will enable the desired production cycle?
d = 400 per day (250 days per year), p = 4000 units per day, H = $40 per unit per year, and Q = 200 (demand for four hours, half a day).

A) $2.00

B) $7.20

C) $18.00

D) $64.00

E) $1,036.80

Answer

This answer is hidden. It contains 30 characters.