Posted by **donna** on Saturday, September 24, 2011 at 12:03am.

Jan Gentry is the owner of a small company that proŽduces electric scissors used to cut fabric. The annual demand is for 9,000 scissors and Jan produces the scissors in batches. On average, Jan can produce 185 scissors per day. Demand for scissors has been about 45 scisŽsors per day. The cost to set up the production process is $125, and it costs Jan 55 cents to carry one pair of scissors for one year.

a) How many scissors should Jan produce in each batch?

b) What will be the maximum inventory?

c) What will be the average inventory ?

d) How many production runs will be made each year?

e) What will the annual setup cost?

f) What will be the annual holding cost?

g) What will be the total inventory cost?

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