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Question 1: A company produces 36000 units per year and the demand of the product is 2400 items per year. The unit cost is Rs 10 per item, the holding cost is one rupee per month per item and the set up cost is Rs 100, determine the following if no shortages are allowed

1. (a) Optimum manufacture quantity
2. (b) The maximum inventory
3. (c) The time between setups
4. (d) The number of setups
5. (e) The manufacturing time
6. (f) The total optimum annual cost