Question: Question 4) Production Quantity Model A stew production facility sells the stew in an adjoining store. Demand for the stew is 32 gallons per day.

Question 4) Production Quantity Model A stew

Question 4) Production Quantity Model A stew production facility sells the stew in an adjoining store. Demand for the stew is 32 gallons per day. Both the store and production facility operate 310 days per year. The company can produce 128 gallons per day. It costs $1200 to setup a production run. The stew is stored at an annual cost of $20 per gallon. The company wants to use the optimal order quantity. (Round the order quantity to an integer value) a. What is the maximum inventory level? b. How many production runs will be required each year? c. What is the total annual carrying cost? d. If the store places an order to the production facility for 1000 gallons of stew (not necessarily the economic order quantity), how many gallons of stew will be sold during the order receipt period

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