Wilson Publishing Company produces books for the retail market.Demand for a current book is expected to occur at a constant annualrate of 7200 copies. The cost of one copy of the book is $13.5. Theholding cost is based on an 21% annual rate, and production setupcosts are $170 per setup. The equipment on which the book isproduced has an annual production volume of 25000 copies. Wilsonhas 250 working days per year, and the lead time for a productionrun is 12 days. Use the production lot size model to compute thefollowing values:
Minimum cost production lot size. Do not round intermediatevalues and round your final answer to two decimal places.
Q* = Number of production runs per year. Do not roundintermediate values and round your final answer to two decimalplaces.
Number of production runs per year = Cycle time. Do not roundintermediate values and round your final answer to two decimalplaces.
T = days Length of a production run. Do not round intermediatevalues and round your final answer to two decimal places.
Production run length = days Maximum inventory. Do not roundintermediate values and round your final answer to two decimalplaces.
Maximum inventory = Total annual cost. Do not round intermediatevalues and round your final answer to two decimal places. Totalcost = $
Reorder point. Do not round intermediate values and round yourfinal answer to two decimal places. r =
