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A chemical firm produces fertilizer in 50-kg bags. Demand for this product is 500 bags per day. The capacity for producing the product is 1700 bags per day. Setup costs for a production run are 80 OMR, and annual storage and handling costs are 0.300 OMR per bag. The firm operates 250 days a year (a) How many bags should be produced in each production run to minimize total annual cost? O 9718.25 O 614.6 O 8692.27 8165 6871.84 (b) The total annual cost is OMR (c) During production, the inventory will build up at a rate of: 1200 kgs per day O 4.57 days per thousand bags 6860 bags per day 6860 kgs per day 60,000 kgs per day (d) The average inventory level in bags is 4082.5 21,693 6860 4859 3430 (e) if the manager wants to run another job for another customer between the production runs for the fertilizer, and needs a minimum of 10 days per run for the other work. Will there be enough time to do the other job? Yes (1) If the setup cost is reduced, and the other variables remain the same, then the number of production runs per year may increase or decrease will decrease will remain unchanged will increase