Can you please explain the asnwer for #1 (parts A - D)
1) A company manufactures hair dryers. It buys some of thecomponents, but it makes the heating element, which it can produceat the rate of 800 per day. Hair dryers are assembled daily, 250days a year, at a rate of 300 per day. Because of the disparitybetween the production and usage rates, the heating elements areperiodically produced in batches of 2,000 units.
A) Approximately how many batches of heating elements areproduced annually?
B) If production on a batch begins when there is no inventory ofheating elements on hand, how much inventory will be on hand twodays later?
C) What is the average inventory of elements, assuming eachproduction cycle begins when there are none on hand?
D) The same equipment that is used to make the heating elementscould also be used to make a component for another of the firm'sproducts. That job would require four days, including setup. Setuptime for making a batch of the heating elements is a half day. Isthere enough time to do this job between production of batches ofheating elements? Explain.
