Determine the optimum production run


Problem: Louisiana Specialty Foods can produce its famous meat pies at a rate of 1650 cases of 48 pies each per day. The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day. The cost of setup, cleanup, idle time in transition from other products to pies, etc., is $320. Annual holding costs are $11.50 per case. Assume 250 days per year. Determine the optimum production run (batch size)? Select one: a. 1089 b. 2730 c. 2025 d. 1980

Request for Solution File

Ask an Expert for Answer!!
Other Subject: Determine the optimum production run
Reference No:- TGS03343490

Expected delivery within 24 Hours