There are two machines in a production process. The first machine produces 800 items per day (12 working hours per day). The second machine uses these items to produce the final product at a rate of 24 items per hour. You make $5 per item before deducting for inventory cost. An item waiting for the second machine costs you $0.50 per hour in holding cost and the set up cost of the first machine is $30.

a) What is your inventory cost per item?

b) What is your daily profit?

c) How many hours does the first machine produce before it is stopped?

d)How many hours is the first machine idle before it is re-started?

e)How many items are produced each day?