Question
All-Star Bat Manufacturing, Inc., supplies baseball bats to major and minor league baseball teams. After an initial order in January, demand over the six-month baseball
All-Star Bat Manufacturing, Inc., supplies baseball bats to major and minor league baseball teams. After an initial order in January, demand over the six-month baseball season isapproximately constant at 1000 bats per month. Assuming that the bat production processcan handle up to 4000 bats per month, the bat production setup costs are $150 per setup,the production cost is $10 per bat, and the holding costs have a monthly rate of 2%, whatproduction lot size would you recommend to meet the demand during the baseball season?If All-Star operates 20 days per month, how often will the production process operate, andwhat is the length of a production run?
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