The optimal run size The number of runs per year How many days it takes to produce the optimal run quantity

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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The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find the following:

  1. The optimal run size
  2. The number of runs per year
  3. How many days it takes to produce the optimal run quantity
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ISBN:
9781337406659
Author:
WINSTON, Wayne L.
Publisher:
Cengage,