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This is what I have so far but I'm confused and don't even know if it's right. 2. Jeoff Foods makes cheese to supply to
This is what I have so far but I'm confused and don't even know if it's right.
2. Jeoff Foods makes cheese to supply to stores in its area. The dairy can make 350lbs of cheese per day, and the demand at area stores is 205lbs per day. Each time the dairy makes cheese, it costs $ 175 to set up the production process. The annual (for 365 days) cost of carrying a pound of cheese in a refrigerated storage area is $12. Determine the following: (10 Points) a. Optimal order size ( 2 points) b. Minimum total annual inventory cost (2 points) c. Number of production runs (1 point) d. Time between runs ( 1 point) e. Run length (2 points) f. Maximum inventory level (2 points) a) 12(1350205)217574825=2295.182295 TC=QCoD+2CcQ(1pd) b) 229517574825+2122295(1350205)=$11410.32 c) 22957482532.60 d) Number of working days in a year =36510=355 32.6355=10.89 daysStep by Step Solution
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