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1 2 TT z xh 5 andout Assignment 4 : Inventory Management 1 - The Nougat Bakery makes cakes for freezing and subsequent sale. The
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andout Assignment : Inventory Management
The Nougat Bakery makes cakes for freezing and subsequent sale. The bakery, which operates days a week, weeks a year, can produce cakes at the rate of cakes per day. The bakery sets up the cakeproduction operation and produces until a predetermined number have been produced. When not producing cakes, the bakery uses its personnel and facilities for producing other bakery items. The setup cost for a production run of cakes is $ The cost of holding frozen cakes in storage is $ per cake per year. The annual demand for frozen cakes, which is constant over time, is cakes. Determine the optimal production run quantity, total annual inventory costs, optimal number of production runs per year, optimal cycle time time between run starts run length in working days.
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