Question

QUESTION 14 In a non-instantaneous receipt model (i.e., production run model), daily demand is 40 units and daily production is 100 units, Co-$50 and Ch-$3 per unityear. The production facility operates 300 days per year. Assume the optimal production quantity is 817. What is the maximum inventory level? O A. 348 B. 577 ° C. 490 D. 780 QUESTION 15 In a non-instantaneous receipt model (i.e., production run model), daily demand is 40 units and daily production is 10 units, Co-$50 and Ch-$3 per unit/year. The production facility operates 300 days per year. Assume the optimal production quantity is 817. Compute Length of Production Run (e, number of days of production) Round off answers to one decimal. O A. Length of production run 40 days

Answer 1

Maximum inventory level= Q (1-d/p)

Q- order quantity, here, taken as optimal production quantity

d-daily demand in units

p-daily production capacity in units

Maximum inventory level = 817 (1- 40/100)

= 490.2 units

Therefore option (c) is correct