Problem: An engine manufacturer requires 82 pistons per day in its assembly operations. No shortages are to be allowed. The machine shop can produce 500 pistons per day. The cost associated with initiating manufacturing action is $400, and the holding cost is $0.45 per piston per day.
The manufacturing cost is $105 per piston.
Q1. Find the minimum-cost production quantity
Q2. Find the minimum-cost procurement level if production lead time is 8 days.
Q3. Calculate the total system cost per day.