← A company uses the finite replenishment model to determine the optimal quantity to produce. There are 250 days a year over which demand and production occur. The daily demand is 510, and the production rate is 870 per day. The setup cost for production is $575 per setup. Assuming that the carrying cost is 15 percent of the item's $45 cost, what is the length, in days, of a production run if the company produces the replenishment quantity that minimizes its inventory-related costs? The length of the production run is days. (Enter your response rounded to one decimal place.)
← A company uses the finite replenishment model to determine the optimal quantity to produce. There are 250 days a year over which demand and production occur. The daily demand is 510, and the production rate is 870 per day. The setup cost for production is $575 per setup. Assuming that the carrying cost is 15 percent of the item's $45 cost, what is the length, in days, of a production run if the company produces the replenishment quantity that minimizes its inventory-related costs? The length of the production run is days. (Enter your response rounded to one decimal place.)
Calculus For The Life Sciences
2nd Edition
ISBN:9780321964038
Author:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Chapter6: Applications Of The Derivative
Section6.EA: Extended Application A Total Cost Model For A Traning Program
Problem 4EA
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 3 steps
Recommended textbooks for you
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,
Calculus For The Life Sciences
Calculus
ISBN:
9780321964038
Author:
GREENWELL, Raymond N., RITCHEY, Nathan P., Lial, Margaret L.
Publisher:
Pearson Addison Wesley,
College Algebra (MindTap Course List)
Algebra
ISBN:
9781305652231
Author:
R. David Gustafson, Jeff Hughes
Publisher:
Cengage Learning
Mathematics For Machine Technology
Advanced Math
ISBN:
9781337798310
Author:
Peterson, John.
Publisher:
Cengage Learning,