1.The optimal production lot size would be:

2.The maximum inventory would be:

3.The number of production setups in a year would be:

4. The length of each order cycle would be:

5.The length of time the rolling mill is operated in each cycle would be:

A steel rolling mill can produce l-beams at the rate of 200 tons per week. Customer demand for the beams is 120 tons per week. To produce these l- beams, the mill must go through a complicated setup that requires changing to the appropriate rolling patterns. Each setup costs the mill $18,000 in labor and lost production. I-beams cost the mill $5,000 per ton, and the mill has an annual holding cost rate of 30 percent. (Assume 50 weeks in year.) The mill follows the optimal production lot size (PLS) policy