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A shop that makes candles offers a scented candle, which has a monthly demand of 360 boxes. Candles can be produced at a rate of 36 boxes per day. The shop operates 20 days a month. Assume that demand is uniform throughout the month. Setup cost is $60 for a production run, and holding cost is $2 per box per month. Determine the following:

 

A)        the economic run size

 

 

 

B)        the maximum inventory (I-max)

 

 

 

 

C)        the run time in days

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    • 12 years ago
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