Question: this demand has been constant throughout the year. The production capacity is 1 9 0 units per day. Each time production starts, it costs the
this demand has been constant throughout the year. The production capacity is units per day. Each time production starts, it costs the company $ to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $ per year. The current production plan calls for refrigerators to be produced in each production run. Assume there are working days per year.
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 units each time production starts, how many days would production continue? days enter your response as a whole number
c Under the current policy, how many production runs per year would be required? runs round your response to the nearest whole number
What would the anniual setup cost be $ round your response to the nearest whole number
d If the current policy continues, how many refrigerators would be in inventory when production stops? units rifund your response to the nearest whole number
What would the average inventory level be units round your response to the nearest whole number
e If the company produces refrigerators at a time, what would the total annual setup cost and holding cost be $ round your response to the nearest whole number
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