A chemical firm produces fertilizer in 50-Kg bags. Demand for this product is 400 bags per day. The annual capacity for producing the product is 250,000 bags. Setup costs for a production run are 55 OMR, and annual storage and handling costs are 0.250 OMR per bag. The firm operates 200 days a year

(a) If the manager wants to run another job for another customer between the production runs for the fertilizer, and needs a minimum of 10 days per run for the other work, will there be enough time to do the other job?

O Yes O No OMR.

b) The total annual cost is..........

c) If the setup cost is reduced, and the other variables remain the same, then the number of production runs per year

O will remain unchanged

O will increase

O will decrease

O may increase or decrease