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A taffy production facility sells the taffy in an adjoining store. Demand for the taffy is 45 pounds per day. Both the stow snd production
A taffy production facility sells the taffy in an adjoining store. Demand for the taffy is 45 pounds per day. Both the stow snd production facility operate 320 days per year for a total annuat demand of 14,400 pounds. The companycan produce 180 pounds per day and send the tafly to the store as it is produced. It costs 51000 to setup a production run. The taffy is stored at an annual cost of $40 per pound. The company wants to use the optimat order quantity. What is the annual carring cost? $15,460 11+700 $332.800 526072+0 $166,400
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