Bill's Ice Cream makes 4 different flavors of ice cream using their secret process and top-secret recipes. Each of their flavors is equally popular and experiences a demand of 12000 kg/year. Bill's process is capable of producing 300 kg/day once they incur the $140 setup cost. The ice cream holding cost is 20% of the $17 per kg price. Bill's plant runs 300 days a year.

a. Determine the economic production quantity.
b. If Bill chooses to use the economic production quantity, what is the annual cost?
c. What would be the production run time?

Answer rating: 100% (QA)

Given that Annual demand D120004 48000 kg Daily production c... View the full answer