1. Acompany has a production at a rate of 200units per day. 80 units will be sold daily. The production willtake place five days a week, 48 weeks a year. It usually takes afull day to get the machine ready for another production run, at acost of $300. Inventory holding costs will be $10 a year.(calculate to2 decimal places) (9marks)
a. Whatis the optional run size and lowest annual cost for carrying andsetup?
b. Whatare the cycle time and run time for the optimal runquantity?
c. If the company wants to run another production for a newproduct between runs of this item, and needs a minimum of 10 daysper cycle for the other work, will there be enough time?