Examine the optimal number of production runs

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Reference no: EM13117535

Weber Babyfood Company can produc applesauce for infants. The company's production capacity is 200,000 jars of applesauce per year. The demand for applesauce is estimated to be 180,000 jars per year. To produce applesauce, a setup cost $1,000 is required. Annual inventory holding cost is estimated to be $0.25 per jar of applesaue per year.

a. Determine the economic lot size
b. Determine the optimal number of production runs
c. Determine the length of time between the start of each production run, assuming 300 working days in a year.

Reference no: EM13117535

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