Question: This is a subjective question, hence you have to write your answer in the Iext-Fleld given below. The demand for an item in a company

This is a subjective question, hence you have to

This is a subjective question, hence you have to write your answer in the Iext-Fleld given below. The demand for an item in a company is 18,000 units per year, and the company can produce the items at a rate of 3,000 per month. The cost of one set-up is Rs. 500 and the holding cost is 15 paise per unit per month. The shortage cost of one unit is Rs. 20 per month. Determine (i) optimum production quantity and optimum back order quantity (ii) Optimum cycle time and maximum inventory level in the cycle. [4+4=8]

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