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The cost to set up for producing a standard component is approximately $300. Once set up they can produce at a rate of approximately 20 units/day (5,000 units per year) at a cost of $100 each. Annual demand is forecast at 2,000 units. If the firm uses 30% annual rate for holding inventory: (Choose the nearest value from the given answers) 01. What is the most economical lot size to produce (ERL)? a. 200 b. 258.2 c. 1,000 d. 346.41 e. None of the above 02. What is the average inventory level (units)? a. 77.46 b. 100 c. 129.1 d. 154.92 e. None of the above 03. What is the level of inventory (i.e., the proportion of production that goes into inventory)? a. 0.25 b. 0.4 c. 0.6 d. 0.75 e. None of the above 04. What is the total inventory carrying costs? (Find a nearest value) 05. What is the optimal number of production run per year (i.e., number of production run per year)? 06. What is the optimum number of days spent for production (i.e., length of a production in days per cycle)? 5pts. a. $1,080 b. $2,324 c. S3,873 d. S7,746 e. None of the above a.. 10 times b. 19.36 times c. 25.82 times d. 7.75 times e. None of the above a. 2.5 days b. 10 days c. 12.91 days d. 50 days e. None of the abovequestions 4,5&6. Please show work (365 days in a year)

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