Discussion:
Q: The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF suppies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producting hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find:
a) The optimum run size
b) The number of runs per year.
c) The length (in days) of a run.