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Louisiana Specialty Foods can produce their famous meat pies at a rate of 1650 cases each per day. The firm distributes the pies to regional
Louisiana Specialty Foods can produce their famous meat pies at a rate of 1650 cases each per day. The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day. The cost of setup, cleanup, idle time in transition from other products to pies, etc., is $320. Annual holding costs are $11.50 per case. Assume 250 days per year. a. Determine the optimum production run. b. Determine the number of production runs per year. c. Determine maximum inventory. d. Determine total inventory-related (setup and carrying) costs per year
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