I found out part a,b,c,d. Could someone help with doing part e? thanks.

Here's the solution to the other 4 parts if that helps:

Demand per day (d)= 30 T

Yearly demand (D) = 30*280= 8400 T

Setup cost (S) =$440

Holding cost per Ton per year (H)=$210

Production capacity per day (p) =55 T

(a) Optimal no of bags per production run is termed as economic production quantity(EPQ).

We have formula for EPQ (Q) = Sqroot{2SD/H(1-d/p)} =Sqroot{2*440*8400/210(1-30/55)}=Sqroot {73,92,000/94.5}

=Sqroot{78,222.22}=279.68=280 (Round fig)

EPQ(Q)=280 T

(b) Average inventory=(0+Q)/2=280/2=140T

(C)Approximate length of Production run = Q/p =280/55 = 5.0 days

(d)Production runs per year = D/Q=8400/280=30

Saved Help Assignment 6 (Chapter 12) Sav 12 A chemical plant produces sodium bisulfate in 150 kg bags. Demand for this product is 30 tonnes per day. The capacity for producing this product is 55 tonnes per day. Setup cost is $440, and storage and handling costs are $210 per tonne per year. The company operates 280 days a year. (Note: 1 tonne = 1,000 kg). a. What is the optimal number of bags per production run? (Round your intermediate calculations to 2 decimal places and the final answer to the nearest whole number.) Optimal number of bags b. What would the average inventory level be for this lot size? (Round your intermediate calculations to 2 decimal places and the final answer to the nearest whole number.) Average inventory | bags c. Determine the approximate length of a production run, in days. (Round the intermediate calculations and final answer to 2 decimal places.) Run length days d. About how many production runs per year would there be? (Round your intermediate calculations to 2 decimal places and the final answer to 1 decimal place.) Runs per year e. How much could the company save annually in Inventory control cost if the setup cost could be reduced to $220 per production run and the optimal production quantity is recalculated and used? (Round the intermediate calculations and final answer to 2 decimal places.) Annual Savings $ M Graw HA