Question 22. part 1-9 question. Answer each part with step by step on how you hot the answer.

a) What is the daily demand of this product? ____ units (enter your response as a whole number)

b) if the company were to continue to produce 400 units at each time production starts, how many days would production continue? ____ days (enter response as whole number)

c) Under the current policy, how many production runs per year would be required ? _____ runs (round upur response to the nearest whole number)

D) what would the annual set ip cost? $____ (round your response to the nearest whole number)

e) if the current policy continues, how many refrigerators would be in inventory when production stops? _____ units ( round response to nearest whole number)

f) What would the average inventory level be? ____ units (round your response to the nearest whole number)

g) if the company profuces 400 refrigerators at a time, what woukd the total annual setup cost and holding cost be? $ _____ (round upur reslonse to the nearest whole number)

h) if Bud Banis wants to minimize the total annual inventory cost, how many refrigerators should be produced in each production run? ____ (round to your nearest whole number)

i) How much would this save the company in inventory cost conpared to the current policy of producing 400 units in each production run? $____ (round your response to the nearest whole number)

Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the president of Emarpy, is concerned about the production policy for the company's bestselling refrigerator. The annual demand for this has been about 7,250 units each year, and this demand has been constant throughout the year. The production capacity is 200 units per day. Each time production starts, it costs the company $130 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $51 per year. The current production plan calls for 400 refrigerators to be produced in each production run. Assume there are 250 working days per year