Question: 1. Demand = 900 units per year , setup costs for a production run = $20, carrying cost = $4 per unit per year, production

1. Demand = 900 units per year , setup costs for a production run = $20, carrying cost = $4 per unit per year, production rate is 25 units per day, and operational days are 300. Thus, the run time is 6 days. True orFalse

2. If annual demand is 300 units and 60 units are filled directly from inventory, the annual fill rate is 20%. True or False

3. If annual fill rate is 3% and 12 units are filled directly from inventory, then demand must be 400 units. True or False

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