Question: Sudss Bottling Company does bottling Labeling, and distribution work for several local microbreweries. The demand rate for Wortmans beer is 600 cases [24 bottles each)

Suds’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. Suds’s bottling production rate is 2,400 cases per week, and the setup cost is $800. The value of inventory is $12.50 per case, and the annual holding cost is 30 percent of the inventory value. What is the economic production lot size?

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