A local t-shirt production company has opened a retail store adjacent to the production plant. The plant manager wishes to optimize the inventory costs of the companys best-selling T-shirt. The annual demand for the T-shirt is 36,000 and the plant works 240 days per yr. The plant can produce the t-shirt at a rate of 440 per day. The cost to prepare the equipment to start a production run is $560 and the annual inventory carrying cost is $3.6 per year.

1. 1. What should be the optimum quantity of t-shirts to produce?

* 7. What is the maximum inventory achieved during a production run?

* 8. How many production runs are needed to meet the annual demand?

* 9. What is the average inventory of t-shirts?

* 10. What is the total annual cost of producing and storing the companys best-selling t-shirts?

A local t-shirt production company has opened a retail store adjacent to the production plant. The plant manager wishes to optimize the inventory costs of the company's best-selling T-shirt. The annual demand for the T-shirt is 36,000 and the plant works 240 days per yr. The plant can produce the t-shirt at a rate of 440 per day. The cost to prepare the equipment to start a production run is $560 and the annual inventory carrying cost is $3.6 per year. 6. What should be the optimum quantity of t-shirts to produce? 7. What is the maximum inventory achieved during a production run? 8. How many production runs are needed to meet the annual demand? 9. What is the average inventory of t-shirts? 10. What is the total annual cost of producing and storing the company's best-selling t-shirts