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Emarpy Appliance is a company that produces all kinds of major appliances. Bud? Banis, the president of? Emarpy, is concerned about the production policy for the? company's best-selling refrigerator. The annual demand for this has been about 7,750 units each? year, and this demand has been constant throughout the year. The production capacity is 200 units per day. Each time production? starts, it costs the company ?$130 to move materials into? place, reset the assembly? line, and clean the equipment. The holding cost of a refrigerator is ?$54 per year. The current production plan calls for 400 refrigerators to be produced in each production run. Assume there are 250 working days per year.

What is the daily demand of this? product? units ?(enter your response as a whole? number).

If the company were to continue to produce 380 units each time production? starts, how many days would production? continue? ?(enter your response as a whole? number).

Under the current? policy, how many production runs per year would be? required? (round your response to the nearest whole? number).

What would the annual setup cost? be? (round your response to the nearest whole? number).

If the current policy? continues, how many refrigerators would be in inventory when production? stops? units ?(round your response to the nearest whole? number).

What would the average inventory level? be? units ?(round your response to the nearest whole? number).

If the company produces 380 refrigerators at a? time, what would the total annual setup cost and holding cost? be? ?$ (round your response to the nearest whole? number).

If Bud Banis wants to minimize the total annual inventory? cost, how many refrigerators should be produced in each production? run? (round your response to the nearest whole? number).

How much would this save the company in inventory costs compared to the current policy of producing 380 units in each production? run? ?$ ?(round your response to the nearest whole? number).

Operation Management, Management Studies

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