Given that annual demand for a product is 20,000 units, cost per unit = $6.00, holding cost rate =\n2.5%/month, changeover (setup) time between product
Given that annual demand for a product is 20,000 units, cost per unit = $6.00, holding cost rate =
\r\n2.5%/month, changeover (setup) time between products averages 2.0 hr, and downtime cost during
\r\nchangeover = $200/hr, determine (a) economic order quantity and (b) total inventory costs for this
\r\nsituation.