Homework $($EPQ$)$

Question $12,$ Problem $12\mathrm{.}30$

HW Score: $28\mathrm{.}96\%,9\mathrm{.}56$ of $33$ points

Part $5$ of $9$

Points: $0\mathrm{.}56$ of $5$

Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the president of Emarpy, is concerned about the production policy for the company's best$-$selling refrigerator. The annual demand for this has been about $7,500$ units each year, and this demand has been constant throughout the year. The production capacity is $210$ units per day. Each time production starts, it costs the company $$130$ to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $$51$ per year. The current production plan calls for $420$ refrigerators to be produced in each production run. Assume there are $250$ working days per year.

a$)$ What is the daily demand of this product? $30$ units $($enter your response as a whole number$).$

b$)$ If the company were to continue to produce $420$ units each time production starts, how many days would production continue? $2$ days $($enter your response as a whole number$).$

c$)$ Under the current policy, how many production runs per year would be required? runs $($round your response to the nearest whole number$).$

What would the annual setup cost be$?$ $$2,340($round your response to the nearest whole number$).$

d$)$ If the current policy continues, how many refrigerators would be in inventory when production stops? units $($round your response to the nearest whole number$).$