Flows out of the productions plant at a constant rate

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The soy milk is now bottled and flows out of the productions plant at a constant rate of 150lb/hr .The bottles each contains 0.5lbs soy equivalent of milk and all flow into a packaging facility annexed to the plant where they are shipped to clients around the country. With a unit holding cost of $1 per week and per bottle, fixed shipping cost of $1000 and a shipping size of 3600 bottles, Please draw the inventory level diagram(ii) compute the average total cost per week .Economic shipping quantity and yearly savings that would be achieved when 4000 bottles, what would be the optimal value and finally the shipping size cannot exceed 8000 bottles.

Reference no: EM13957398

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