A company can produce a part it uses in an assembly operation at the rate of 25 an hour. The company operates eight hours a day, 300 days a year. Daily usage of the part is 150 parts. The company uses the part every day. The production size is 4,243 parts (rounded number). The annual holding cost is $1 per unit, and the setup cost is $50. Don’t add the thousands separator in your answer.
1. How many runs per year will there be? Roundup the obtained value
2. While production is occurring, 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 maximum number of parts in inventory?
4. The machine is dedicated to this product. Every so often, preventive maintenance, which requires three working days, must be performed on it. Does this interrupt production cycles, or is there enough time between cycles to perform the maintenance? If Yes write “Y”, if No write “N”: . Justify your answer by completing the following sentence:
-The usage is parts/day for 3 days.
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