production and operation management(inventory management)

A toy manufacturer makes its own wind-up motors, which are then put into its toys. While the toy manufacturing process is continuous, the motors are intermittent flow. Data on the manufacture of the motors appears below. Annual demand (D) = 50,000 units Daily subassembly production rate = 1,000 Daily subassembly usage rate = 200 Setup cost (S) = $85 per batch Carrying cost = $.20 per unit per year calculate: i. optimal order quantity (3 marks) ii. Number of days are required to produce a batch (1 marks)