Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A chemical plant produces sodium bisulfate in 1 4 0 k g bags. Demand for this product is 2 8 tonnes per day. The capacity
A chemical plant produces sodium bisulfate in bags. Demand for this product is tonnes per day. The capacity for producing this product is tonnes per day. Setup cost is $ and holding cost is $ per tonne per year. The company operates days a year. Note: tonne
a What is the optimal number of bags per production run? Round your intermediate calculations to decimal places and the final answer to the nearest whole number.
Optimal number of bags
b What would the average inventory level be for this lot size? Round your intermediate calculations to decimal places and the final answer to the nearest whole number.
Average inventory bags
c Determine the approximate length of a production run, in days. Round the intermediate calculations and final answer to decimal places.
Run length days
d About how many production runs per year would there beRound your intermediate calculations to decimal places and the final answer to decimal place.
Runs per year
e How much could the company save annually in inventory control cost if the setup cost could be reduced to $ per production run and the optimal production quantity is recalculated and used? Round the intermediate calculations and final answer to decimal places.
Annual Savings
$
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started