The Wood Valley Dairy makes cheese to supply to stores in its area. The dairy can make 250 pounds of cheese per day (365 days per year), and the demand at area stores is 180 pounds per day. Each time the dairy makes cheese, it costs $125 to set up the production process. The annual cost of carrying a pound of cheese in a refrigerated storage area is $12. Determine the optimal order size and the minimum total annual inventory cost.
Answer to relevant QuestionsThe Rainwater Brewery produces Rainwater Light Beer, which it stores in barrels in its warehouse and supplies to its distributors on demand. The demand for Rainwater is 1,500 barrels of beer per day (365 days per year). The ...Craftwood Furniture Company is a U.S.–based furniture manufacturer that offshored all of its actual manufacturing operations to China about a decade ago. It set up a distribution center in Hong Kong, from which the company ...The Union Street Microbrewery makes 1220 Union beer, which it bottles and sells in its adjoining restaurant and by the case. It costs $1,700 to set up, brew, and bottle a batch of the beer. The annual cost to store the beer ...Determine the optimal order quantity of sweatshirts and total annual cost in Problem 30 if the carrying cost is a constant $8 per sweatshirt per year.The Atlantic Paper Company produces paper from wood pulp ordered from a lumber products firm. The paper company’s daily demand for wood pulp is a constant 8,000 pounds. Lead time is normally distributed, with an average of ...
Post your question