Snack food bags on long rolls of plastic film

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Reference no: EM132231032

Kellam Images prints snack food bags on long rolls of plastic film. The plant operates 250 days a year. The daily production rate is 6000 bags, and the daily demand is 3500 bags. The cost to set up the design for printing is $300. The holding cost is estimated at 2 cents per bag.

a. What is the number of cycles (i.e. production runs) per year?

b. What is the idle time between the cycles (or the production runs)?

Reference no: EM132231032

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