REQUIRED:

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

b What is the length of a production run in days?

c$.$ What is the cycle time?

d What would the average inventory be for this lot size?

e About how many runs per year would there be$?$

f

If the manager wants to run another job between runs of this item, and needs a minimum

of $10$ days

per cycle for the other work, will there be enough time? Note: Cycle time $-$ Run time $-$

Setup time must be greater than or equal to $10!$

g

During production, at what rate will inventory build up$?$ Note: Buildup rate is $p-u!$