Sharpe Cutter is a small company that produces specialty knives for paper cutting machinery. The annual demand for a particular type of knife is 100,000 units. The demand is uniform over the 250 working days in a year. Sharpe Cutler produces this type of knife in lots and, on average can produce 450 knives a day. 11w cost to set up a production lot is $300 and the annual holding cost is $1.20 per knife.

a. Determine the economic production lot size (FIS).

b. Determine the total annual setup and inventory holding cost for this item.

c. Determine the TRO or cycle length, for the ELS.

d. Determine the production time per lot.