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4. The Monteiro Macaroni Company is performing inventory analysis on their linguini. Demand for this product is more or less constant from week to week
4. The Monteiro Macaroni Company is performing inventory analysis on their linguini. Demand for this product is more or less constant from week to week and is for 1,620,000 pounds per year. Each pound has an annual holding cost of $1. The set up cost is $50 per production order and their lead time to set up to produce linguini is 0.4 working days. Suppose that Monteiro can produce 10,000 pounds of linguini per day during a production run and has 324 working days each year. (Show all calculations and be sure to label your answers.) (a) Calculate Monteiro's optimal production order quantity for this product. 4 each (b) Calculate the length of an optimal linguini production run at Monteiro Macaroni Co. (c) Calculate the optimal reorder point. (d) Calculate Monteiro's minimum total annual inventory cost for this product
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