Question: 2 . KON Ltd . can produce the disk drive housings in the Hamilton, Ontario, plant at a rate of 1 5 0 housings per
KON Ltd can produce the disk drive housings in the Hamilton, Ontario, plant at a rate of housings per month. Also, KON uses the drive housing at a fairly steady rate of mathbf per year. The housings cost $ each to produce, and the setup cost for beginning a production run is $ The holding cost is assumed to be mathbf$ Apply EPQ model.
a What is the optimal number of housings for KON to produce in each production run?
b Find i the time between initiation of production runs, ii the time devoted to production, and iii the setup time downtime each production cycle.
c What is the maximum dollar investment in housing that KON has at any point in time?
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