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November 14 Alternative Activity EPQ Related Problems
November 14 Alternative Activity EPQ Related Problems
2. Arthur Gomez is the production manager of People’s Cars and Rims, a small
local metal car parts fabricator. This company supplies all local car repair
shops within Cebu, Mandaue & Lapulapu Cities, which has a total
accumolative demand of 10,000 wheel rims annually. This order has been
consistently stable for the past several years after entering the market. The
company has a set-up cost of P40, and a holding cost of P0.60 per wheel rim
per year. People’s Car and Rims can produce 500 wheel rims per day. One
particular buyer is a just-in-time user and requires that 50 wheel rims to be
shipped to all his shipped to all its shop .