Question: 5.(15 points) HP produces its multimedia notebook computer on a production line that has an annual capacity of 15000 units. HP estimates the annual demand

5.(15 points) HP produces its multimedia notebook
5.(15 points) HP produces its multimedia notebook computer on a production line that has an annual capacity of 15000 units. HP estimates the annual demand for this model at 5000 units. The cost to set up the production line is $2250, and the annul holding cost is $20 per unit. The company runs 365 days a year. Current practice calls for production runs of 500 notebook computers each month. Show steps to find: a. What is the optimal production lot size? b. How many production runs should be made each year? c. Would you recommend changing the current production lot size from the monthly 500 unit production run? Why or Why not? What is the projected savings of your recommendation

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