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Case
Biman Bangladesh Airlines commonly known as Biman, is the flag carrier of Bangladesh. Its main hub is at Shahjalal International Airport in Dhaka and it also operates flights from its secondary hubs at Shah Amanat International Airport in Chittagong and Osmani International Airport in Sylhet. The airline provides international passenger and cargo services to its destinations; as of April 2015, it has air service agreements with 42 countries, but flies to just 16 of them.
4. Biman uses 500000 rivets per year for their cargo operation. Biman has a small plant which produces rivets at a rate of 5000 per day. The screws are manufactured uniformly over the entire year. Carrying cost is $1 per shoe rivets a year. Setup cost for a production run of screw is $25. The Biman operates 250 days per year.
Determine the:
a. Optimal run size
b. Minimum total annual cost for carrying and setup
c. Cycle time for the optimal run size d. Run time (10 marks)
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