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concept note to calculate Economic Production quantity , Total Annual set up and carrying cost

Question # 00235986
Subject: Economics
Due on: 04/02/2016
Posted On: 04/02/2016 07:02 AM

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Q.1 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

· Economic production quantity

· Total annual set-up and carrying cost

· Cycle time for economic production quantity

· Run time

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