Acme Co. produces digital cameras. Demand for current model is anticipated to occur at the constant annual rate of 5400 items. One digital camera costs $349. Holding cost is based on 10% annual rate, and production setup costs are $1200. Manufacturing plant has the annual production capacity of 8900 units. Acme has 275 working days per year, and lead time for the production run is 2 days. Utilize production lot size model to find given values:
i) Reorder point
ii) Total annual cost
iii) Cycle time
iv) Maximum inventory
v) Length of a production run
vi) Number of production runs per year
vii) Minimum cost production lot size