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Question: b addis food factory can produce burgers at a rate...
Question details
B. Addis Food Factory can produce burgers at a rate of
2,000 per day. The factory
supplies its products to local stores and restaurants at a steady
rate of 130 per day.
The cost to prepare the equipment for producing burger is $18. The
annual holding
cost is 25 cents per unit. The factory operates 300 day in a year.
Find:
A. The optimal run size.
B. The number of units per year.
C. The length (in days) of a run.
Solution by an expert tutor
