Two identical Distribution Centers each have a demand of 20,000units/year for a product from the same...

Two identical Distribution Centers each have a demand of 20,000units/year for a product from the same factory. The cost to process an order at the Factory is $36, and the cost to hold one unit in stock for one year at the Factory is $3/unit/year. The Factory production rate is 100 units/day and the usage rate is 60 units/day. Calculate the Factory lot size for this product.

547 Units

1,265 Units

1,569 Units

6,197 Units

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Expert Solution

Rahul Sunny answered 2 years ago

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