Question: Sud's Bottling Company does bottling, labeling and distribution work for several local microbreweries. The demand rate for Wortman's beer is 600 cases (24 bottles each)

Sud's Bottling Company does bottling, labeling and distribution work for several local microbreweries. The demand rate for Wortman's beer is 600 cases (24 bottles each) per week and set up cost is $800. The value of inventory is $12.50 per case and annual holding cost is 30% of inventory value? What is the optimum number of production runs per year?

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