00:01
Hello students, in the first question we ask you to find epq that is economic production quantity and the formula for this is 2 into d into s by h take the square root of it.
00:20
So, d is the demand, s is the setup cost and h is holding cost per year.
00:24
So, here d is equal to 12200 and we have to calculate per day.
00:39
So, this is divided by 250 which is number of working days in year, so which is equal to 48 .8.
00:48
So, here epq is equal to 2 into 48 .8 into 32 divided by 2 take square root and this is equal to 39 .52 rounded to two decimal places.
01:22
And in the next question, the number of production runs per year, so this can be calculated by using formula number of production per year is equal to d by epq and this is equal to 12200 divided by epq which is 39 .52 and this is equal to 308 .70.
02:15
Now, in the c question, the maximum in the maximum inventory level, so this can be calculated by using maximum inventory level is equal to epq by 2 epq divided by 2 which here is equal to 39 .52 divided by 2 and this is equal to 19 .76.
03:03
Now, d the percentage of time the facility will be producing components can be calculated by using production time.
03:21
Production time as a percentage of total time is equal to epq into 250 divided by d into 100 percent...