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A chemical firm produces sodium bisulfate in 2 0 - pound bags. Demand for this product is 2 0 tons per day. The capacity for

A chemical firm produces sodium bisulfate in 20-pound bags. Demand for this product is 20 tons per day. The capacity for producing the product is 502 tons per day. Set up costs $100, and storage and handling costs are $5 per ton a year. The firm operates 200 days a year. (Note: 1 ton =2000 pounds).(a) How many bags per run are optimal?(b) What would average inventory be for this lot size?(c) Determine the approximate length of a production run?(d) About how many runs per year would there be?(e) How much could the company save annually if the set up cost could be reduced to $25 per run?

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