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7. A finished product called A is produced using several different subassemblies. One of these subassemblies is subassembly B. Subassembly B is made of many parts and one of these parts is part C. The EOQ for producing subassembly B is 400, the order point is 100, and the present inventory is 200. The EOQ for producing part C is 1000, the order point is 250, and present inventory is 300.

a) If 50 of product A are to be made, how many of part C should be made?

b) If 150 of product A are to be made, how many of part C should be made?

9. If the company in Question 7 expects to receive payment for the component 12 days after shipping, on which days can they expect to receive payment?

10. The production of the component in Question 7 requires the use of one machine. In chart form, identify the days during the next 25 days that the machine is not available for other work?