A valve manufacturer plans to produce 25,000 units of a special valve next year. The production rate is 100 valves per day, and the demand rate is 80 valves per day. The setup cost is $ 50.00 per run and the holding costs are $ 4.00 per unit per year. R=25,000 units H=$4.00 C=$50 p=100 valves D=80 valves Assuming backorder is permitted, if the lead time is 5 working days, what is the maximum number of units in backorder?

A valve manufacturer plans to produce 25,000 units of a special valve next year. The production rate is 100 valves per day, and the demand rate is 80 valves per day. The setup cost is $ 50.00 per run and the holding costs are $ 4.00 per unit per year. R=25,000 units H=$4.00 C=$50 p=100 valves D=80 valves Assuming backorder is permitted, if the lead time is 5 working days, what is the maximum number of units in backorder?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...

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