BJMP2033/PRODUCTION & OPERATIONS MANAGEMENT SEMESTER OCT-FEB (2020-2021)/(A201)-AN INDIVIDUAL ASSESSMENT (100%) QUESTION ONE (25 MARKS) A. High-Eight Enterprise produces cooking oils for domestics' markets. The enterprise operates with three shifts per day within a week and producing about 1400 units of 1-kg in an hour operation. Due to continuous demand from retailers, the enterprise must justify the demand which roughly 140,000 units per week. Once orders are confirmed, the transport will be in two weeks with a $450 per order. Meantime, the undelivered bottles must be inventoried with a cost of $0.20 per unit. The enterprise operates 50 weeks per year and can tolerate stockouts 7% for any circumstances with a standard deviation of a dozen units. Based on the above statement, answer all the following questions: 1) The design capacity for the enterprise. (2 MARKS) 2) The optimum number of ordering. (2 MARKS) 3) The total cost of inventories per year. (2 MARKS) BJMP2033/PRODUCTION & OPERATIONS MANAGEMENT SEMESTER OCT-FEB (2020-2021)/(A201)-AN INDIVIDUAL ASSESSMENT (100%) 4) The optimal number of production runs (orders) per year. (1 MARK) 5) The optimum cycle times. (1 MARK) 6) The length of time to receive orders. (1 MARK) 7) The maximum inventory levels. (2 MARKS) 8) The reorder point and safety stocks. (2 MARKS)