A chemical plant produces sodium bisulfate in 100 kg bags. Demand for this product is 20 tonnes
Question:
a. What is the optimal number of bags per production run?
b. What would the average inventory' level be for this lot size?
c. Determine the approximate length of a production run, in days.
d. About how' many production runs per year would there be?
e. How' much could the company save annually in inventory' control cost if the setup cost could be reduced to $200 per production run and the optimal production quantity is recalculated and used?
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Related Book For
Operations Management
ISBN: 978-0071091428
4th Canadian edition
Authors: William J Stevenson, Mehran Hojati
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