1. A company has a production at a rate of 200 units per day. 80 units will be sold daily. The production will take place five days a week, 48 weeks a year. It usually takes a full day to get the machine ready for another production run, at a cost of $300. Inventory holding costs will be $10 a year. (calculate to2 decimal places) (9 marks)

a. What is the optional run size and lowest annual cost for carrying and setup?

b. What are the cycle time and run time for the optimal run quantity?

c. If the company wants to run another production for a new product between runs of this item, and needs a minimum of 10 days per cycle for the other work, will there be enough time?