Gqeerate:

$2.$ Compute ine menumer cest prodaction lot sice for each of the following proviu and $($iv$)$ fow,$000$ utuls per year:

$6.$ Compune the BOQ recommended lot suze using equation $(10\mathrm{.}5).$ Comparing the EO about the reiationsitip between the HOQ model and the production lot sice model?

Notebook Computers. EL Computer produces its multimedia notebook computer a production line that has an annual capacity of $10,000$ units. EL$.$ Computer estimate the amual demand for this model at $6000$ units. The cost to set up the production lin is $$2345,$ and the annual holding cost is $$20$ per unit. Current practice calls for prod tion runs of $500$ notehook computers each month. LO $2$

a$.$ What is the optimal production lot size?

h$.$ How many production runs should be made each year? What is the recommended crcle time?

c Would you recommend changing the current production lot size policy from the monthly $500-$unit production runs? Why or why not? What is the projected saving of your recommendation?