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What is the recommended production lot size

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Question - 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 retention cost is estimated at 2 cents per bag.

a. What is the recommended production lot size?

b. If there is a period of five days to configure the line, what is the recommended order point?

Reference no: EM133038644

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