The friendly Sausage factory (FSF) can produce hot dogs at a rate of 5,000 units per day. FSF supplied hot dogs to local restaurant at a steady state rate of 250 per day.
The cost to prepare equipment for producing hot dog is $66. Annual holding cost is 45 cents per hot dog.
The factory operates 300 days a year. Find
a) The optimal run size.
b) The number of runs per year.
c) The length (in days) of a run.