A company extracts oil from canola seeds. Demand for canola oil is constant throughout the year at the rate of 72,000 cans. The holding cost is $0.50 per can per year. The cost involved in the machine set-up is $100 per set-up. The production capacity of the machine is 300 cans per day. The year has 365 days. Determine the following: a. The optimal production run quantity b.The maximum inventory C.The total minimum annual inventory costs D.The optimal number of production runs per year E.The length of the production run

A company extracts oil from canola seeds. Demand for canola oil is constant throughout the year at the rate of 72,000 cans. The holding cost is $0.50 per can per year. The cost involved in the machine set-up is $100 per set-up. The production capacity of the machine is 300 cans per day. The year has 365 days. Determine the following: a. The optimal production run quantity b.The maximum inventory C.The total minimum annual inventory costs D.The optimal number of production runs per year E.The length of the production run

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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