The Assumptions of the Production Order Quantity Model Are Met

Multiple Choice

The assumptions of the production order quantity model are met in a situation where annual demand is 3650 units, setup cost is $50, holding cost is $12 per unit per year, the daily demand rate is 10 and the daily production rate is 100. The production order quantity for this problem is approximately

A) 139
B) 174
C) 184
D) 365
E) 548