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A chemical plant produces sodium bisulfate in 100 kg bags. Demand for this product is 20 tonnes per day. The capacity for producing this product is 50 tonnes per day. Setup cost is $400, and storage and handling costs are $200 per tonne per year. The company operates 200 days a year. (Note: 1 tonne = 1,000 kg).
What is the optimal number of bags per production run?
What would the average inventory level be for this lot size? (Round your answer to the nearest whole number.)
Determine the approximate length of a production run, in days. (Round your answer to 2 decimal places.)
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