Consider FED's problem that is described in the previous problem. To meet with state audit requirement, FED now has to ensure that it does not hold eggs for more than 20 days. 1. Does the current policy satisfy this requirement? What batch size should they use in order to meet this requirement? Explain. 2. Under this new policy, what is the inventory turns realized by FED? 3. What is the resulting change in cost?

Answer rating: 100% (QA)

To address the new state audit requirement we need to evaluate the current policy regarding egg hold... View the full answer