Answer:
The economic production quantity is 1329 as shown below
Explanation:
Demand=65000 brackets
Production per hour=150 brackets
Production per day=150*8hours=1200 brackets pr day
n=250 days per year
d=Demand per yer/Number of days
d=65000/250
d=260 brackets per day
Set up cost=$350/set up
Cost of bracket=$0.47
Holding cost=20%*$0.47=$0.094
The formula in calculating economic production quantity is :
EPQ=[tex]\sqrt{x}[/tex] 2DS/H*[tex]\sqrt{x}[/tex]P/P-D
EPQ=([tex]\sqrt{x}[/tex]2*65000/0.094)*[tex]\sqrt{x}[/tex]1200/1200-260)
EPQ=1176.001158 *1.129865366
EPQ=1329