Question

ABC has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit. The number of pieces in order includes 2.3 Lakhs per order. Printing is done 300 days and 2 days to deliver this book. What is the annual demand to production ratio in this case? What does it indicate for the company?​

Answer 1

Answer:

ABC has a demand of 75 Lakhs per year. Setup cost and holding cost are 29 and 35 per unit. The number of pieces in order includes 2.3 Lakhs per order. Printing is done 300 days and 2 days to deliver this book. What is the annual demand to production ratio in this case? What does it indicate for the company?