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Healthy Plants Ltd. (HP) produces Its premium plant food in 50-pound bags. Demand for the product is 10,000 pounds per week. HP operates fifty weeks
Healthy Plants Ltd. (HP) produces Its premium plant food in 50-pound bags. Demand for the product is 10,000 pounds per week. HP operates fifty weeks per year and can produce 23,000 pounds per week. The setup cost is $220 and the annual holding cost rate is $0.68 per bag. Currently, HP produces its premium plant food in batches of 1,200,000 pounds. Calculate the maximum inventory level for HP according to its current operating policy. Calculate the total annual costs of this operating policy
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