RegdNo. 21906620152
Assignment No. 2
Course Code: DMGT501
Registration Number:
Instructions:
a.Attempt all questions given below in your own handwriting. Assignment in typed format will not be
considered for evaluation.
b.The student has to complete the assignment in the allocated pages only. Any other page in case utilized shall
not be considered.
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?
[10 Marks]
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