Given: The Kfl Peynir Co. has a production capacity of 500 kg/week, and produces several kinds...

 

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Given: The Küflü Peynir Co. has a production capacity of 500 kg/week, and produces several kinds of cheese, among which Ezine Beyazı is a best seller. The demand for Ezine Beyazı is constant and 250 kg/week. The production set-up costs are 200 TL, and the holding costs are calculated as 2.50 TLpa/kg Required: If Küflü Peynir closes down its operation for two weeks each year for annual vacation and maintenance, design the optimal production schedule for Ezine Beyazı, specifying the optimal quantity and frequency of production, and the total cost of this operation to Küflü Peynir. Given: The Küflü Peynir Co. has a production capacity of 500 kg/week, and produces several kinds of cheese, among which Ezine Beyazı is a best seller. The demand for Ezine Beyazı is constant and 250 kg/week. The production set-up costs are 200 TL, and the holding costs are calculated as 2.50 TLpa/kg Required: If Küflü Peynir closes down its operation for two weeks each year for annual vacation and maintenance, design the optimal production schedule for Ezine Beyazı, specifying the optimal quantity and frequency of production, and the total cost of this operation to Küflü Peynir.

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Lets calculate the total cost for each production quantity and frequency to find the optimal solutio... View the full answer