Question: Problem 1 From the table below: a) Classify articles according to Pareto's law: A, B, C b) Find the economical quantity to order for each

Problem 1 From the table below: a) Classify articles according to Pareto's law: A, B, C b) Find the economical quantity to order for each item. Problem? A chemical company produces sodium bisulfate in 100kg bags. The demand for this product is 20 tons (metric) per day. The production capacity for this product is 50 tons per day. (N.B.: 1 tonne =1,000 kg) The cost of tuning and start-up is $100, and storage and ownership costs are $50 per tonne per year. The company is in operation 200 days a year. a) What is the optimal quantity of bags to produce? b) What is the average stock under these conditions? (give answer in bags) c) What is the approximate duration (in days) of a production series
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
