Question: URGENT!! Please show all work and answer the questions fully! I will give excellent ratings if you answer it fully, so I can fully understand.
URGENT!! Please show all work and answer the questions fully! I will give excellent ratings if you answer it fully, so I can fully understand.
An operations manager of a juice processing plant must determine the lot size for apple juice
that has a steady demand of litres per day. The production rate is litres per day, setup
cost is $ annual holding cost is $ per litre, and the plant operates days per year.
a Determine the optimal order quantity, the number of orders and the time between orders. What
is the total annual setup cost? What is the total holding cost per year? Using an appropriately
labelled diagram, graph setup cost, holding cost, and total inventory cost, and show the optimal
production order quantity and the minimum total inventory cost. What is the setup time in hours,
based on a $ per hour setup labour cost?
b Determine the duration of the active production interval, t Determine the maximum inventory.
Determine demand during the production interval.
c As part of its new JIT program, the company has signed a longterm contract with its
customers and the company will take orders electronically for juice. The lot size production
order quantity will drop to litres. Determine the new setup cost per order and the number
of orders setups What is the total annual cost of managing the inventory with the new policy?
What is the setup time in hours, based on a $ per hour setup labour cost with the new policy?
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