Q2 Assume that our firm produces type C fire extinguishers. We make 30,000 of these fire
extinguishers per year. Each extinguisher requires one handle (assume a 300 day work year for
daily usage rate purposes). Assume an annual carrying cost of $1.50 per handle; production setup
cost of $150, and a daily production rate of 300. What is the optimal production order quantity?
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IF 30 000 fir extinguishers are made each year and each extingisher requires one handle and the number of days for working in a year is 300 and each hanle cost $1.5 therefore production is set up for $ 150 AND THE ADILY PRODUCTION rate is 300 per day the optimal production quantity is the total maximum which can be reproduced
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