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A chemical firm produces sodium bisulfate in 1 0 0 - pound bags. Demand for this product is 2 0 tons per day. The capacity
A chemical firm produces sodium bisulfate in pound bags. Demand for this product is tons per day. The capacity for producing the product is tons per day. Setup costs $ and storage and handling costs are $ per ton a year. The firm operates days a year. Note: ton pounds.a How many bags per run are optimal?b What would the average inventory be for this lot size?c Determine the approximate length of a production run, in days.d About how many runs per year would there bee How much could the company save annually if the setup cost could be reduced to $ per run
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