QUESTION $2-25$ Marks

A$).$ A part is produced in batches size of $2,500$ pieces. Annual demand is $35,000$ pieces, and piece cost is $$8\mathrm{.}50.$ Setup time to run a batch is $1\mathrm{.}5hr,$ cost of downtime on the affected equipment is figured at $$\frac{200}{h}r,$ and annual holding cost rate is $18\%.$ What would the annual savings be if the product were produced in the economic order quantity? marks