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The FS factory can produce wieners at a rate of 5,000 per day. FS supplies wieners to local stores at a steady rate of 400 per day. The cost of...
The FS factory can produce wieners at a rate of 5,000 per day. FS supplies wieners to local stores at a steady rate of 400 per day. The cost of preparing the equipment for producing wieners is $25. Annual holding costs are 30 cents per wiener. The factory operates 350 days a year. Find:
The optimal total production quantity per production cycle and the corresponding maximal on-hand stock level,
The optimal number of production cycles per year, and
The optimal length of each production cycle.