EcoElectronics Inc. is a manufacturer that produces three types of electronic devices (Type A - Smartphones, B - Tablets, and C - Laptops). The company manufactures these devices with the same machines. Production costs are equal to $300 per unit for all types, and holding costs are based on a 10% annual interest rate for all types. (Consider 365 days per year, and assume zero setup time)

Type

A 5,000 B 5,000 C 12,000

Production Rate (units per year) 25,000

20,000

30,000

Setup Cost 50

40

60

Demand Rate (units per year)

a. What is the optimal cycle time?

b. What are the optimal lot sizes of each product?

c. What is the maximum inventory of each product?

d. What is the idle time?

e. What is the optimal cycle time if a setup time of 1 day is now required