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A chemical plant produces sodium bisulfate in 1 4 0 kg bags. Demand for this product is 2 8 tonnes per day. The capacity for
A chemical plant produces sodium bisulfate in kg 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 kg
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 $
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