Question: SUBJECT NAME: PRODUCTION AND OPERATION DO NOT USE MS EXCEL OR ANY OTHER SOFTWARE FOR CALCULATION, ANSWERS WILL NOT BE ACCEPTED HANDWRITTEN ANSWER APPRECIATED NO

SUBJECT NAME: PRODUCTION AND OPERATION DO NOT USE

SUBJECT NAME: PRODUCTION AND OPERATION

DO NOT USE MS EXCEL OR ANY OTHER SOFTWARE FOR CALCULATION, ANSWERS WILL NOT BE ACCEPTED

HANDWRITTEN ANSWER APPRECIATED

NO FURTHER INFORMATION AVAILABLE REGARDING THE QUESTION.

Annual demand for an item is 36,000 units. The production capacity is 10,500 units per month. Production cost per unit is Rs.12.6. Inventory carrying cost is estimated to be 20% of average inventory. The set up cost for each production run is Rs.225. Determine (1) Economic lot size (2) No.of setups per year (3) Cycle time (4) Production time per cycle (5) Max. level of Inventory (6) Total annual cost

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