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What is the maximum inventory level

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Reference no: EM132634405

Problem - The XYZ Farm produces organically grown greenhouse tomatoes that are sold to area grocery stores. The annual demand for XYZ's tomatoes is 270,000 pounds. The farm is able to produced 305,000 pounds annually. The cost to transport the tomatoes from the farm to the stores is $620 per lead. The annual carrying cost is $0.12 per pound.

Required -

1) What is the production lot size?

2) What is the total minimum cost?

3) What is the maximum inventory level?

Reference no: EM132634405

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