Question: Is the answer A or B I am confused The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5000 per day.
Is the answer A or B I am confused
The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5000 per day. FSF supplies hot dogs to local restaurants at a rate of 250 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Which inventory model is applicable and why? Select one: . a. EPQ since the FSF is producing the hotdogs and selling them to restaurants at a constant and known rate. In addition, the production rate at the FSF far exceeds the demand rate for the hot dogs. O b. EOQ since the restaurants order hot dogs from the FSF and the demand rate is constant and known for the hot dogs
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