Please answer #5

2. The estimated total setup cost for the flag displays for the coming year is S 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 conts and setup costs for the coaming year would increase (decrease) by 4. The mamber of productios runs per yeur of the fag displsys that would minimize the sium of carrying couts and setup coets for the coming year is uk. Aberty. Inc, manufactures a linc of tags. The annual demand for its tlag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the ost to initiate a production run is $50. There aro no flag displays on hath but liberty had scheduled 6o equal production runs of the display sets for the coming year, the fint of 1. If Liberty does not maintain a safety steek, the estimated total carrying cest for the flag diuplsys for the cocting year is $ 2. The entiensted total setup cost for the gag tisplays for the coming year is S coming year would increase (dectenve) thy 4. The number of groduction fans per year of the flae dinglays that would minimine the num of carnying coats asd athep coets fof tae oreting year a Liberty, Inc. manufactures a line of flags. The annual demand for its flag display is estimated to be 100,000 units. The annual cost of carrying one unit in inventory is $1.60, and the cost to initiate a production run is $50. There are no flag displays on hand but Liberty had scheduled 60 equal production runs of the display sets for the coming year, the first of which is to be run immediately. Liberty has 250 business days per year. Assume that sales occur uniformly throughout the year and that production is instantaneous. 5. A safety stock of a 3-day supply of flag displays would increase Liberty's planned average inventory in units by units