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Guemmer Specialty Foods can produce their famous cherry pies at a rate of 1650 cases per day (this is the daily production rate). The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day (this is the daily demand rate). The cost of each production setup is $320. Annual holding costs are $11.50 per case per year. Annual demand is 62,500 cases. Assume 250 working days per year. Assume the POQ (Production Order Quantity) model is used by Guemmer Specialty Foods.
Refer to Scenario 5. What is the optimal Production Order Quantity (POQ)?
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Respond to the statement “Organizations are vulnerable when leaders stick with obsolete mental models in the face of new realities.”
The study of leadership also requires aligning theory and practice, as most organizations combine theory and practice to achieve organizational goals.
Now suppose that each can of dog food sales for $1.50. If the required profit per can is at least $0.65, write the constraint satisfying this objective function. You do not need to resolve for the optimal answer.
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