Question: The fish processing facility takes raw fish as input and transforms it into the final product. Upon arrival raw fish is stored in the freezer

The fish processing facility takes raw fish as input and transforms it into the final product. Upon arrival raw fish is stored in the freezer with capacity R tons. Fish is a highly perishable food which needs proper preservation, and the storage cost is HKD 1,000 per month per ton. Raw fish that arrive when the freezer is full are lost; that is, they never get into the freezer.

Raw Fish ---> Freezer (Max storage= R tons) ----> Fish processing Facility (Capacity=3000 tons/month)----->Processed Fish

The raw fish is seasonal, that is, the arrival rate of raw fish depends on the time of year, which is given as follows:

Raw Fish input rate (Tons/month):0-4 (3600tons/month), 4-8 (4800tons/month), 8-12(600 tons/month).

Assume that the storage capacity of the freezer is infinite, i.e., R=. Draw inventory buildup diagram for the freezer. What is the annual storage cost?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related General Management Questions!