Question: by hand please without using excel EXERCISE 4 ABC Company manufactures brackets. The setup cost is $25 and 50 brackets could be produced in a

by hand please without using excel
EXERCISE 4 ABC Company manufactures brackets. The setup cost is $25 and 50 brackets could be produced in a day once the machine has been set up. The company estimates that the cost of producing one bracket would be $14.8. The holding cost would be 10% of this cost. Also, the company needs 2,500 brackets per year while it opens its outlets for customers 250 days per year. a. What is the daily demand rate? b. What is the optimal production quantity? c. How long will it take to produce the optimal quantity? How much inventory is sold during this time? d. If the owner, Mr. Darwich, uses the optimal production quantity, what would be the maximum inventory level? What would be the average inventory level? And what is the total holding cost? e. How many production runs would be there each year? What would be the total setup cost? f. If the lead time is one-half day, what is the ROP if demand and lead time are constantStep by Step Solution
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