Wilson Publishing Company produces books for the retail market.Demand for a current book is expected to occur at a constant annualrate of 6,900 copies. The cost of one copy of the book is $13. Theholding cost is based on an 15% annual rate, and production setupcosts are $155 per setup. The equipment on which the book isproduced has an annual production volume of 21,500 copies. Wilsonhas 250 working days per year, and the lead time for a productionrun is 15 days. Use the production lot size model to compute thefollowing values:
A. Minimum cost production lot size. Round your answer to thenearest whole number. Do not round intermediate values.
Q* =
B. Number of production runs per year. Round your answer to twodecimal places. Do not round intermediate values.
Number of production runs per year =
C. Cycle time. Round your answer to two decimal places. Do notround intermediate values.
T = days
D. Length of a production run. Round your answer to two decimalplaces. Do not round intermediate values.
Production run length = days
E. Maximum inventory. Round your answer to the nearest wholenumber. Do not round intermediate values.
Maximum inventory =
F. Total annual cost. Round your answer to the nearest dollar.Do not round intermediate values.
Total annual cost = $
G. Reorder point. Round your answer to the nearest whole number.Do not round intermediate values.
r =
