Determine the approximate length of a production run

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Reference no: EM1382001

A chemical firm produces sodium is 100-pounds bags. Demand for this product is 25 tons per day. The capacity to produce the product is 75 tons per day. Setup costs $1500.00 and storage and handling costs are 55 per ton per year. The firm operates 300 days a year.(note: one ton is 2000 pounds) How many bags per run are optimal? What would the average inventory for this. Determine the approximate length of a production run in days. About how many runs per year would there be?

Reference no: EM1382001

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