$5.$ Case $-$ Wilson Publishing Company

Wilson Publishing Company produces books for the retail market. Demand for a current book is expected to occur at a constant annual rate of $7,800$ copies. The cost of one copy of the book is $$13\mathrm{.}50.$ The holding cost is based on an $18\%$ annual rate, and production setup costs are $$150$ per setup. The equipment with which the book is produced has an annual production volume of $25,000$ copies. Wilson has $250$ working days per year, and the lead time for a production run is $15$ days. Use the production lot size model to compute the following values.

Question

$($a$)$ Minimum cost production lot size $($Round your answer to the nearest integer.$)$

$($b$)$ Number of production runs per year $($Round your answer to the nearest integer.$)$

$($c$)$ Cycle time $($Round your answer to the nearest integer.$)$

$($d$)$ Length of a production run $($in days$)($Round your answer to the nearest integer.$)$

$($e$)$ Maximum inventory $($Round your answer to the nearest integer.$)$

$($f$)$ Total annual cost $($in $$)($Round your answer to the nearest integer.$)$

$($g$)$ Reorder point $($Round your answer to the nearest integer.$)$