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The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 4,750 per day. FSF supplies hot dogs to local restaurants at a steady rate of 320 per day. The cost to prepare the equipment for producing hot dogs is $61. Annual holding costs are 46 cents per hot dog. The factory operates 296 days a year.
a. Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number.)
Optimal run size
b. Find the number of runs per year. (Round your answer to the nearest whole number.)
Number of runs
c. Find the length (in days) of a run. (Round your answer to the nearest whole number.)
Run length (in days)
What is the optimal size of the production run? What is the average holding cost per year?
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