Economic lot size
The DavidCo Hula hoop division has a steady demand of 48,000 hula-hoops per year. Illustrate the inventory levels that result by manufacturing 1,2,4,6 and 12 batches per year by graphing the number of units on hand over a 12 month period.
x=the number of batches to be manufactured per year
k=the cost of storing one unit for one year
c=the fixed set-up cost to manufacture one batch of the product
g= the cost of manufacturing a single unit
M=the total number of units to produc annually
How would you set up this problem so you can graph it. I tried to plug in numbers but I didn't do it right.