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The Ambrosia Bakery makes calms for freezing and subsequent sale. The bakery, which operates five days a week, 52 weeks a year, can produce cakes at the rate of 116 cakes per day. The bakery sets up the cake-production operation and produces until a predetermined number (Q) has been produced. When not producing cakes, the bakery’ uses its personnel and facilities for producing other bakery items. The setup cost for a production run of cakes is $700. The cost of holding frozen cakes in storage is $9 per cake per year. The annual demand for frozen cakes which is constant over time, is 6000 calms. Determine the following:
- a. Optimal production run quantity (Q)
- b. Total annual inventory costs
- c. Optimal number of production runs per year
- d. Optimal cycle time (time between run starts)
- e. Run length in working days
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- Practical Management ScienceOperations ManagementISBN:9781337406659Author:WINSTON, Wayne L.Publisher:Cengage,