Kroft Foods makes cheese to supply to stores in its area. The dairy can make 350 kilograms

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Kroft Foods makes cheese to supply to stores in its area. The dairy can make 350 kilograms of cheese per day, and the demand at area stores is 205 kilograms per day. Each time the dairy makes cheese, it costs $175 to set up the production process. The annual cost of carrying a kilogram of cheese in a refrigerated storage area is $12. Determine the optimal order size and the minimum total annual inventory cost.

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Operations Management Creating Value Along the Supply Chain

ISBN: 978-1118301173

1st Canadian Edition

Authors: Roberta S. Russell, Bernard W. Taylor, Ignacio Castillo, Navneet Vidyarthi

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