Nathan Manufacturing, Inc., makes and sells specialty hubcaps for the retail automobile aftermarket. Nathan's forecast for its wire-wheel hubcap is2,980 units next year.The production process is most efficient at 15 units per day and therefore, when in production, the company produces at the rate of 15 per day. The company wants to solve for the optimum number of units per order.This plant operates 298 days per year and schedules production of this hubcap only as needed.The setup cost is$13.50 and the holding cost is$0.31 per unit per year.

a). Calculate the following values: (Round all answers to 2 decimal places)

Optimal Production Quantity=

Maximum Inventory level =

Average inventory =

No. of orders per year =

Annual Holding Cost =

Annual ordering cost =

Total inventory cost =

b). What is the time between start of two consecutive production orders?(State your answer in days & round answer to 2 decimal places.)

c). What is the length of time required to produce one lot?(State your answer in days & round answer to 2 decimal places.)

d). What percentage of time during the year would production for this product take place?(State your answer as a percentage % round answer to 2 decimal places)