Calculate the optimal production run quantity

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Reference no: EM13992290

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 rete 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.

Calculate:

a) The optimal production run quantity.

b) The number of production runs per year.

c) The length (in days) of a production run.

Reference no: EM13992290

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