lem Example

HW$\_$Hints$-11$: OPERATIC

HW$(6).$P$12$: Inventory Pro

Protecting

purses$/58674/$assignments$/893232?$module$\_$item$\_$id$=1980393$

BASIC EPQ QUESTION:

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 $100$ units a day. Eighty $(80)$ units will be used daily in assembling the final product. Assembly w 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 production run, at a cost of $$200.$ Inventory holding costs will be $$10$ per unit per year.

What run quantity $($EPQ$)$ should be used to minimize total annual costs?

What is the length of a production run in days?

What is the cycle time?

What would the averaan inventory he far thic lat cize?