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

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 cycle time for the optimal run size is 50 days. True or False

Safety stock represents the amount of inventory needed to meet expected demand. True or False

If the difference in alternative shipping prices is less than the holding cost it is better to choose faster or more expensive shipping price. True or False

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