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lbety, Inc, manufactures a line of flags. The annual demand for its tlag display is estimated to be 100,000 units. The annual cogt of camying
lbety, Inc, manufactures a line of flags. The annual demand for its tlag display is estimated to be 100,000 units. The annual cogt of camying one unit in inventory is 51.60, and the ost tos initiate a pedoction rus is 550 . There aro no flag displaye on hatd but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the fint of which is to be run immediately. Liberty has 250 busitess days per year. Asuame that sales occur uniformily theoughout the year and that production is instantateoas. 1. If Liberty does not maintain a safety sicek, the estimated total carrying cest for the flag displsys foe the coming year is \$ 2. The entituated total setup cos for the thag tisplays foe the coming year is $ coming year would increase (dectenes) try lbety, Inc, manufactures a line of flags. The annual demand for its tlag display is estimated to be 100,000 units. The annual cogt of camying one unit in inventory is 51.60, and the ost tos initiate a pedoction rus is 550 . There aro no flag displaye on hatd but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the fint of which is to be run immediately. Liberty has 250 busitess days per year. Asuame that sales occur uniformily theoughout the year and that production is instantateoas. 1. If Liberty does not maintain a safety sicek, the estimated total carrying cest for the flag displsys foe the coming year is \$ 2. The entituated total setup cos for the thag tisplays foe the coming year is $ coming year would increase (dectenes) try 2. The estimated total setup cost for the flag displays for the coming year is 5 3. If Liberty were to scbedule 30 oqual production runs of the flag display for the coming year, instead of 60 equal rins, the sumb of carrying corts and setup costs for the conning year would increase (decrease) by 4. The namber of production runs per year of the fag displsys that would minimize the sum of carrying couts and setup coets for the coming year is ruak: units
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