Determine the optimum production run and maximum inventory

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Reference no: EM13969140

Louisiana Specialty Foods can produce their famous meat pies at a rate of 1650 cases of 48 pies each per day. The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day. The cost of setup, cleanup, idle time in transition from other products to pies, etc., is $320. Annual holding costs are $11.50 per case. Assume 250 days per year. • a. Determine the optimum production run. • b. Determine the number of production runs per year. • c. Determine maximum inventory. • d. Determine total inventory-related (setup and carrying) costs per year.

Reference no: EM13969140

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