Find the optimal run size

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Reference no: EM131920407

Problem

The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 240 per day.

The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year.

a. Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Reference no: EM131920407

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