[Production model:] T-Print is a t-shirt printing shop which can print 70 shirts per day. Daily...

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[Production model:] T-Print is a t-shirt printing shop which can print 70 shirts per day. Daily demand (or usage) of T-Print's t-shirts is 30 a day (assume there are 360 business days a year). Inventory holding cost is estimated at $ 12 per t-shirt per year. It costs T-Print $20 to setup the printer with the desired design and color. The owner of T-Print currently print 400 t-shirts after each setup (current production lot size adopted). When all 400 units are sold, it sets up the screen printer again to print the next batch of 400 units. [Up to two decimal points for all answers.] (1) What is the maximum inventory under the current lot size policy of 400? units (two decimal points) (2) What is the production run time in days under the current lot size policy? days (two decimal points) (two decimal points) (3) What is the Total Cost under the current lot size policy? $ (4) Realizing the current policy is not the best, T-Print wants you to help it determine the best production lot size to minimize the total cost. What is the optimal production lot size? units (two decimal points) [Ordering model:] T-Print is considering an option of ordering the t-shirts from an outside vendor instead of printing the t-shirts itself. It estimates the ordering cost would be $ 16 per order. Daily demand is the same, i.e. not affected by whether it produces the T-shirts or orders from a vendor (30 shirts per day and assume there are 360 business days in a year). Holding cost per t-shirt per year is not affected by this decision either, i.e. $12 per shirt per year. (5) What is the total cost if T-Print orders 150 t-shirts each time (current order quantity policy) it places an order? $ decimal points) (6) What is the cycle time in days under the current order quantity policy? days. (two decimal points) (two [Production model:] T-Print is a t-shirt printing shop which can print 70 shirts per day. Daily demand (or usage) of T-Print's t-shirts is 30 a day (assume there are 360 business days a year). Inventory holding cost is estimated at $ 12 per t-shirt per year. It costs T-Print $20 to setup the printer with the desired design and color. The owner of T-Print currently print 400 t-shirts after each setup (current production lot size adopted). When all 400 units are sold, it sets up the screen printer again to print the next batch of 400 units. [Up to two decimal points for all answers.] (1) What is the maximum inventory under the current lot size policy of 400? units (two decimal points) (2) What is the production run time in days under the current lot size policy? days (two decimal points) (two decimal points) (3) What is the Total Cost under the current lot size policy? $ (4) Realizing the current policy is not the best, T-Print wants you to help it determine the best production lot size to minimize the total cost. What is the optimal production lot size? units (two decimal points) [Ordering model:] T-Print is considering an option of ordering the t-shirts from an outside vendor instead of printing the t-shirts itself. It estimates the ordering cost would be $ 16 per order. Daily demand is the same, i.e. not affected by whether it produces the T-shirts or orders from a vendor (30 shirts per day and assume there are 360 business days in a year). Holding cost per t-shirt per year is not affected by this decision either, i.e. $12 per shirt per year. (5) What is the total cost if T-Print orders 150 t-shirts each time (current order quantity policy) it places an order? $ decimal points) (6) What is the cycle time in days under the current order quantity policy? days. (two decimal points) (two

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1 The maximum inventory under the current lot size policy of 400 can be calculated by Maximum invent... View the full answer