A company uses 36,000 tyres to produce car wheels
every year. The company can make its own tyres simultaneously at a rate of 500
per day and the carrying cost is 2 per tyre per annum. If the company is open
for 240 days of the year and each production run incurs a set-up cost of 40,
what is:
Economic production quantity
Total annual set-up and
carrying costCycle time for economic
production quantityRun timeA company uses 36,000 tyres to produce car wheels
every year. The company can make its own tyres simultaneously at a rate of 500
per day and the carrying cost is 2 per tyre per annum. If the company is open
for 240 days of the year and each production run incurs a set-up cost of 40,
what is:
