Question: An operations manager at an apple sauce processing plant must determine lot size for the Gala unsweetened sauce that has a steady demand of 1900

An operations manager at an apple sauce processing plant must determine lot size for the Gala unsweetened sauce that has a steady demand of 1900 litres per day. The production rate is 7000 litres per day, setup cost is $500, annual holding cost is $0.41 per litre, and the plant operates 340 days per year. What is the optimal order quantity?

In the same apple sauce processing plant, the lot size for the Mac sweetened apple sauce is 9400 litres and daily demand is 1450 litres per day. Recall that the plant is open 340 days per year, ordering costs were $500, and holding costs were $0.41. How many orders (lots) per year are produced? Answer to one decimal place.

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