Question: B and C only. 13. (18 Pt) The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery, which operates 5 days
B and C only.
13. (18 Pt) The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery, which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies per day. The bakery sets up the pie production operation and produces until a predetermined number (Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facilities for producing other bakery items. The setup cost for a production run of fruit pies is $500. The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozen fruit pies, which is constant over time, is 5,000 pies. Determine the following: a. (6 Pts) Determine the optimal production run quantity (Q) and the total annual inventory costs. b. 6 Pts) Determine the number of production runs per year and the maximum inventory level. c. (6 Pts) If the Simple Simon Bakery has only enough space to hold a maximum of 1200 pies in inventory, how will that affect the inventory costs
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