Question: The Friendly Sausage Factory FSF can produce hot dogs at

The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $ 66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find
a. The optimal run size.
b. The number of runs per year.
c. How many days does it take to produce the optimal run quantity?

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  • CreatedDecember 30, 2014
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