Answer:
48,497.42 containers
Step-by-step explanation:
The economic order quantity (EOQ) is a model that is used to determine the optimum order size that minimizes the balance of carrying and ordering cost.
This model can also be modified to determine the optimum batch quantity, that is the number of units to produced in a production run. The model is given below
EOQ = √2× Co× D/Ch
EOQ - economic production run, Co- set up cost per run, Ch- carrying cost per unit per year, D- demand
EOQ = 2 √2× 490× 1,200,000/0.5
EOQ = 48,497.42 containers
Neilsen should produce 48,497.42 containers per production run in order to minimize the production cost