A company is about to begin production of a new product. The manager of the department that will produce one of the components for the product wants to know how often the machine used to produce the item will be available for other work. The machine will produce the item at a rate of 200 units a day. Eighty units will be used daily in assembling the final product.Assembly will take place five days a week, 50 weeks a year. The manager estimates that it will take almost a full day to get the machine ready for a production run, at a cost or $300. Inventory holding costs will be $10 a year.

a.What run quantity should be used to minimize total annual costs?

b.What is the maximum inventory level

c.how many order cycles are there per year?

d.What will be the total Inventory cost for the company each year?

e.if current production quantity is 1200, what is your remarks to the manufacturer.