(Q2-Q6) LEE's Fantasy Co. produces ice cream bars for vending machine and has a daily demand...

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(Q2-Q6) LEE's Fantasy Co. produces ice cream bars for vending machine and has a daily demand for 200 bars. The company has the capacity to produce 180,000 bars per year. The cost of setting up for the bar production is $7.50, and the fim is reluctant to produce too many at one time because the storage cost(refrigeration) is relatively high at 30 percent of the actual bar price. Each ice cream bar is expected to sell at $5.00. The firm supplies vending machines with its "Fantasy Bars" on 360 days of the year at Rowan. (Choose the nearest value up to 2 decimal points from the given answers). 3 pts. each _02. What is the most cconomical lot size to produce (i.e. ERL) 03. What is the average inventory level (units)? 04. What is the total inventory carrying cost of bars per bar-year? _os. What is the total inventory cost (i.e. total set-up cost and total carrying cost)? 06. What is the optimal length of the production run in days (i.e., Number of days for production)? (4 pts.) (Q2-Q6) LEE's Fantasy Co. produces ice cream bars for vending machine and has a daily demand for 200 bars. The company has the capacity to produce 180,000 bars per year. The cost of setting up for the bar production is $7.50, and the fim is reluctant to produce too many at one time because the storage cost(refrigeration) is relatively high at 30 percent of the actual bar price. Each ice cream bar is expected to sell at $5.00. The firm supplies vending machines with its "Fantasy Bars" on 360 days of the year at Rowan. (Choose the nearest value up to 2 decimal points from the given answers). 3 pts. each _02. What is the most cconomical lot size to produce (i.e. ERL) 03. What is the average inventory level (units)? 04. What is the total inventory carrying cost of bars per bar-year? _os. What is the total inventory cost (i.e. total set-up cost and total carrying cost)? 06. What is the optimal length of the production run in days (i.e., Number of days for production)? (4 pts.)

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Ans 2 Economical lot size to produce 1095... View the full answer