Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 100-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 50 tons per day. Setup costs $100, and storage and handling costs are $5 per ton a year. The firm operates 200 days a year. (Note: 1 ton =2,000 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 be?e. How much could the company save annually if the setup cost could be reduced to $25 per run

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Project Management With CompTIA Project+

Authors: Joseph Phillips

4th Edition

9781259860300

More Books

Students also viewed these General Management questions

Question

In Exercises 1-3, balance the chemical equation for each reaction.

Answered: 1 week ago

Question

2. Is it proper to speak of the reliability of a test" Why?

Answered: 1 week ago