What is the optimal number of bags per production run


Question: A chemical plant produces sodium bisulfate in 135 kg bags. Demand for this product is 20 tonnes per day. The capacity for producing this product is 50 tonnes per day. Setup cost is $475, and holding cost is $200 per tonne per year. The company operates 200 days a year. (Note: 1 tonne = 1,000 kg).

a. What is the optimal number of bags per production run? (Round the final answer to the nearest whole number.) Answer only in numbers, no words.

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Operation Management: What is the optimal number of bags per production run
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