LS2597: A contractor has to supply 10,000 parts per day to an automobile manufacturer. He produces at the rate of 25000 units per day. The holding cost is 20 paise part per year and the set up cost is Rs. 180. How frequently should the production run be made?

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Question: A contractor has to supply 10,000 parts per day to an automobile manufacturer. He produces at the rate of 25000 units per day. The holding cost is 20 paise part per year and the set up cost is Rs. 180. How frequently should the production run be made?

 


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