Does this interrupt production cycles

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A company has decided to produce a part they use in an assembly operation at the rate of 50 units an hour. The company operates 300days, eight hours a day. Daily usage of the part is 300 parts. The company uses the part every day. The run size is 6,000 parts. The annual holding cost is $2 per unit, and setup cost is $100.

a. How many runs per year will there be?

b. While production is occurring, how many parts per day are being added to inventory?

c. Assuming that production begins when there are no parts on hand, what is the maximum number of parts in inventory?

d. The machine is dedicated to this product. Every so often, preventive maintenance, which requires six working days, must be performed on it. Does this interrupt production cycles, or is there enough time between cycles to perform the maintenance? Explain.

Reference no: EM132238346

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