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3325module2-1b. The XYZ Inc. decides to make mother board for its computer assembly internally. The following information is available (go to chapter 12 slides, and make sure that you build an excel spread sheet for your solutions):

Annual Demand, units/year


Set up Cost Per Production Run


Annual Carrying Costs, as of Unit Cost


Unit Costs, manufacturing


Daily Production (in units)


Lead Time (days)


Safety Stock


Days of a Calendar Year


Group of answer choices (T/F)

ELS is 1000 (T/F)

Time Lapse per Production Run not 25 (T/F)

Maximum Inventory is not 200 (T/F)

Minimum Inventory is -10 (T/F)

Average Inventory is not 200 (T/F)

Reorder Point is 41 (T/F)

Total Production Runs a Year are not 25 (T/F)

Reorder Interval is less than 25 (T/F)

Annual Inv. Carrying Costs are less than $800 (T/F)

Annual Inv. Carrying Costs are less than $1,000 (T/F)


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