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Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the president of Emarpy, is concerned about the production policy for

Emarpy Appliance is a company that produces all kinds of major appliances. Bud Banis, the president of Emarpy, is concerned about the production policy for the company's best-selling refrigerator. The annual demand for this has been about 8000 units each year, and this demand has been constant throughout the year. The production capacity is 130 units per day. Each time production starts, it costs the company $130 to move materials into place, reset the assembly line, and clean the equipment. The holding cost of a refrigerator is $53 per year. The current production plan calls for 390 refrigerators to be produced in each production run. Assume there are 250 working days per year.

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