A company can produce a part it uses in an assembly operation at the rate of 50 an hour. The company operates 8 hours a day, 300 days a year. Daily usage of the part is 300 parts. The company uses the part every day. The run size is 6,000 parts. The annual holding cost is $2 per unit, and setup cost is $100.

1. How many runs per year will there be?

2. While production is occuring, how many parts per day are being added to inventory?

3. Assuming that production begins when there are no parts on hand, what is the manimum number of parts in inventory?

4. The machine produces only this product. Every so often, preventive maintenance which requires six working days, must be performed on it. Does this interrupt prodcution cycles, or is there enough time between cycles to perform the maintenance? Explain.