The following information pertains to Emy Manufacturing Corporation's Product X: Annual demand                                                                    33,750 units  Annual cost to hold one unit of inventory                       P15  Setup cost (or the cost to initiate a production run)      P500  Beginning inventory of product X                                     0 At present, the Company produces 2,250 units of Product X per production runt for a total of 15 production runs per year. The company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product X. If the EOQ model is used, the economic lot size is a.2,250 units. c. 2,250,000 units. b.1,500 units. d. P1,500.

Practical Management Science
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Author:WINSTON, Wayne L.
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Chapter2: Introduction To Spreadsheet Modeling
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The following information pertains to Emy Manufacturing Corporation's Product X:

Annual demand                                                                    33,750 units

 Annual cost to hold one unit of inventory                       P15

 Setup cost (or the cost to initiate a production run)      P500

 Beginning inventory of product X                                     0

At present, the Company produces 2,250 units of Product X per production runt for a total of 15 production runs per year. The company is considering to use the EOQ model to determine the economic lot size and the number of production runs that will minimize the total inventory carrying cost and setup cost for Product X.

If the EOQ model is used, the economic lot size is

a.2,250 units. c. 2,250,000 units.

b.1,500 units. d. P1,500.

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