A company manufactures hair dryers. One particular model of hair dryer can be produced at the rate of 285 per day. (Assume 365 days per year.) The demand for the hair dryers is regular at 110 hair dryers per day. The cost of holding a hair dryer in inventory for a year is estimated to be $17. To set up the equipment to manufacture a batch of hair dryers would cost $291. The company will manufacture a batch of a particular model of hair dryer, then manufacture other types of hair dryer until they run out of inventory, at which point they will manufacture another batch. What is the batch size that will minimize the annual costs to hold inventory and set up the equipment for manufacture? QUESTION 27 A company makes tubs of cookie dough at the rate of 258 tubs of cookie dough a day. They will make a particular flavor of cookie dough in batches; they will make the amount of cookie dough that will minimize their overall batch setup and inventory holding costs, then clean the equipment and make another flavor of cookie dough, storing any inventory in the freezer until needed. The Snickerdoodle flavor of cookie dough is demanded at a rate of 31 tubs of cookie dough a day. If the economic production quantity of the Snickerdoodle cookie dough is 928 tubs of cookie dough, what is the maximum inventory level of tubs of Snickerdoodle cookie dough that will be reached? QUESTION 28 A copy center uses standard 8.5"x11" paper at a rate of 31 boxes of paper a day. (Assume 365 days in a year.) The annual cost of holding a box of paper in inventory for a year is estimated at $2. Because of the weight of the paper, shipping an order of paper costs $212 per order. How many boxes of paper should the copy center order with each order in order to minimize their annual ordering and holding costs?
