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Calculate the optimal production run quantity

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Reference no: EM132910534

A sausage factory can produce European wieners at a rate of 500 kg per day. It supplies wieners to local stores and restaurants at a steady rate of 100 kg per day. The cost to prepare the equipment for producing European wieners is $12. Annual holding cost is $4 per kg of wieners. The factory operates 300 days a year.

a. Calculate the optimal production run quantity. (Round the final answer to the nearest whole number.)

Optimal production run quantity kg

b. Calculate the number of production runs per year. (Round the final answer to the nearest whole number.)

No. of production runs per year

c. Calculate the length (in days) of a production run. (Round the final answer to the nearest whole number.)

Length of a production run day(s)

 

Reference no: EM132910534

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