What is the maximum inventory level

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Assignment:

A stew production facility sells the stew in an adjoining store. Demand for the stew is 51 pints per day. Both the store and production facility operate 310 days per year. The company can produce 255 pints per day. It costs $1350 to setup a production run. The stew is stored at an annual cost of $19 per pint. The company wants to use the optimal order quantity.

1. What is the maximum inventory level?

2. How many production runs will be required each year?

3. What is the total annual carging cost?

4. If the store places an order to the production facility for 1400 pints of stew (not necessarily the economic order quantity), how many pints of stew will be sold during the order receipt period? Be sure to use all four significant digits past the decimal.

Reference no: EM133458411

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