If the Bike Company decides to produce the handlebars, what is the optimal order quantity? What is the annual cost?

Write a 150- to 300-word analysis discussing how motivational theory was applied to management in the articles in the bibliography.
September 12, 2020
assume that the distribution of the cost of a room at the courtyard over a year can be approximated by a normal distribution with a mean of 130 and a standard deviation of 20.
September 12, 2020

A Bike Company has a line of specialty mountain bikes which
require 5,000 handlebars annually. The handlebars can be purchased
from a supplier for \$30 per unit, or they can be produced
internally. The internal production cost is \$20 per unit, and the
production rate is 20,000 units per year. The cost to set up
production is \$5000. It costs \$25 to issue a purchase order to buy
handlebars from the supplier. Inventory holding cost is 25% per
year. If the Bike Company decides to produce the handlebars, what
is the optimal order quantity? What is the annual cost?

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