(Solved): A company produces two types of washing machines in one of its plants. The sp ...

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A company produces two types of washing machines in one of its plants. The specifications of each washing machine model are given in the table below: The company assumes a set-up cost that averages \( \$ 200 \) per hour and holding costs are based on a \( 2 \% \) monthly interest rate. There are an average of 20 workdays per month and 8 working hours per day. Suppose that you want to create a rotation cycle for the production of these two models. a. What is the optimal length of such a cycle? b. Draw a graph that shows the inventory levels of both models as a function of time. Indicate all production, set-up activities and all critical inventory values on the graph. c. How many units of model 2 are produced in each cycle? d. According to this policy, what percentage of time is the production line idle?