TechWorks Corp. produces J-Pods, music players that can download thousands of songs. TechWorks forecasts that demand for the year will be 42,000J-Pods. The variable production cost of each J-Pod is $55. Due to the large $55,000 cost per setup, TechWorks plans to produce J-Pods once a month in batches of 4,800 each. The carrying cost of a unit in inventory is $21 per year. Requirement 1. Using an MRP system, what is the annual cost of producing and carrying J-Pods in inventory? (Assume that, on average, half of the units produced in a month are in inventory.) Begin by determining the formula, and then calculate the annual cost of producing and carrying J-Pods in inventory, using an MRP system. Required 1. Using an MRP system, what is the annual cost of producing and carrying J-Pods in inventory? (Assume that, on average, half of the units produced in a month are in inventory.) 2. A new manager at TechWorks has suggested that the company use the EOQ model to determine the optimal batch size to produce. (To use the EOQ model, TechWorks needs to treat the setup cost in the same way it would treat ordering cost in a traditional EOQ model.) Determine the optimal batch size and number of batches. Round up the number of batches to the nearest whole number. What would be the annual cost of producing and carrying J-Pods in inventory if it uses the optimal batch size? 3. TechWorks is also considering switching from an MRP system to a JIT system. This will result in producing to demand in batch sizes of 600J-Pods. The frequency of production batches will force TechWorks to reduce setup time and will result in a reduction in setup cost. The new setup cost will be $6,000 per setup. What is the annual cost of producing and carrying J-Pods in inventory under the JIT system? 4. Compare the models analyzed in the previous parts of the problem. What are the advantages and disadvantages of each? Requirement 1. Using an MRP system, what is the annual cost of producing and carrying J-Pods in inventory? (Assume that, on average, half of the units produced in a month are in inventory.) Begin by determining the formula, and then calculate the annual cost of producing and carrying J-Pods in inventory, using an MRP system