10. A chemical firm produces sodium bisulfate in 100-pouf per day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage and handling costs are $5 per ton a year. The firm operates 200 days a year. (Note: 1 ton = 2,000 pounds.) a. How many bags per run are optimal? b. What would the average inventory be for this lot size? c. Determine the approximate length of a production run, in days.

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Note: you must first covert all units of measurement from tons or pounds to bags for this assignment (use an excel file to show formulas used) 

10. A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons
per day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage and
handling costs are $5 per ton a year. The firm operates 200 days a year. (Note: 1 ton = 2,000 pounds.)
%3D
a. How many bags per run are optimal?
b. What would the average inventory be for this lot size?
c. Determine the approximate length of a production run, in days.
d. About how many runs per year would there be?
25 per run?
Transcribed Image Text:10. A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage and handling costs are $5 per ton a year. The firm operates 200 days a year. (Note: 1 ton = 2,000 pounds.) %3D a. How many bags per run are optimal? b. What would the average inventory be for this lot size? c. Determine the approximate length of a production run, in days. d. About how many runs per year would there be? 25 per run?
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