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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?

Respuesta :

Chrisnando

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:

[tex] I_m_a_x = \frac{Q}{p}(p-d) [/tex]

[tex] =\frac{750}{50} (50 - 10) [/tex]

[tex] = 15 * 40 [/tex]

[tex] = 600 [/tex]

Now find the average inventory using the formula:

[tex] I_a_v_g = \frac{I_m_a_x}{2} [/tex]

[tex] = \frac{600}{2} = 300 [/tex]

The average inventory for this problem is 300 units