2. A manufacturer has to supply his customer with 24,000 units of his product per year. This demand is fixed and known. Since the unit used by the customer is an assembly-line operation and the customer has no storage space for the units, the manufacturer must ship a day's supply each day. If the manufacturer fails to supply the required units, he will lose the account and probably his business. Hence, the cost of shortage is assumed to be infinite, and, consequently, none will be tolerated. The inventory holding cost amounts to 0.10 per unit per month, and the set-up cost per run is Rs 350. Find the optimum lot size and the length of optimum production run.
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2. A manufacturer has to supply his customer with 24,000 units of his product per year. This demand...
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