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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 750 units.

What is the average inventory for this problem?

A. 600
B. 245
C. 300
D. 375
E. 61

Respuesta :

cancinodavidq

Answer:

C. 300

Explanation:

Step 1. Given information.

  • daily demand rate = 10.
  • daily production rate = 50.
  • Q is 750.

Step 2. Formulas needed to solve the exercise.

maximum inventory = Q(1-d/p)

Step 3. Calculation.

612 x (1-10/50) = 600

Step 4. Solution.

average inventory = max/2 = 300

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