A production order quantity problem has a daily demand rate = 10 and a daily production rate = 50. The production order quantity for this problem is approximately 612 units. What is the average inventory for this problem?

Answer

300 units Explanation: Given: Daily demand rate, d = 10 Daily production rate, p = 50 Production order quantity, Q = 750 Required: Find the average inventory First find the maximum inventory using the formula: Now find the average inventory using the formula: The average inventory for this problem is 300 units

Latest posts by Answer Prime (see all)

- In general. in order for a price decrease to cause a decrease in total revenue. demand must be - November 26, 2022
- Which of the following are basic phases of the management process? - November 26, 2022
- Do Cuban cigars have marijuana in them (THC)? - November 26, 2022