A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tonsper day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage andhandling 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?

A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 20 tonsper day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage andhandling 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?

Practical Management Science

6th Edition

ISBN:9781337406659

Author:WINSTON, Wayne L.

Publisher:WINSTON, Wayne L.

Chapter2: Introduction To Spreadsheet Modeling

Section: Chapter Questions

Problem 33P: Assume the demand for a companys drug Wozac during the current year is 50,000, and assume demand...

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