Question: I did not understand the question from e - f. This is my answer from a -d. A company is about to begin production of

I did not understand the question from e - f. I did not understand the question from e - f.This is my answer from a -d.

I did not understand the question from e - f.

A company is about to begin production of a new product. The manager of the department that will produce one of the components for the product wants to know how often the machine used to produce the item will be available for other work. The machine will produce the item at a rate of 200 units a day. Eighty units will be used daily in assembling the final product. Assembly will take place five days a week, 50 weeks a year. The manager estimates that it will take almost a full day to get the machine ready for a production run, at a cost of $300. Inventory holding costs will be $10 a year. (30 points) a. What run quantity should be used to minimize total annual costs? b. How many days does it take to produce the optimal run quantity? c. What is the average amount of inventory? d. If the manager wants to run another job between runs of this item, and needs a minimum of 10 days per cycle for the other work, will there be enough time? e. Given your answer to part d, the manager wants to explore options that will allow this other job to be performed using this equipment. Name three options the manager can consider. f. Suppose the manager decides to increase the run size of the new product. How many additional units would be needed to just accommodate the other job? How much will that increase the total annual cost? C E F I J K L 7 B Produce rate = Units used Time = 8 D 200 units a day 80 units a day 5 days a week 50 weeks 9 10 11 12 250 P 200 13 U 80 ZI 14 20000 $300 $10 Total cost $8,485.28 15 16 17 A. 18 What run quantity should be used to minimize total annual cost? V2DS/H 19 EOQ 20 1414.21 The 1414.21 units quantity should be uesed to minize the annual cost. 21 22 B. How many days does it take to produce the optimal run quantity? 23 24 Run time EOP/P 7.07 It takes 7.07days to produce the optimal run quantity. 25 26 27 C. 28 Maximum inventory 29 Ave inventory 30 What is the average amount of inventory? 848.5281374 Q/2 424.26 The average inventory is 424.26 units. 31 32 D. If the manager wants to run another job between runs of this item, and needs a minimum of 10 days per cycle for the other we 33 34 Minimum Cycle time 10 days per cycle 35 36 Cycle time Qp/u 17.68 days 37 38 E. Given your answer to part d, the manager wants to explore options that will allow this other job to be performed using this eq 39 40 41 42 43 Q.2 +

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