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Wes and Steve make homemade hot sauce for use on their lunch trucks. The sauce, which is NOT perishable, is used at a steady
Wes and Steve make homemade hot sauce for use on their lunch trucks. The sauce, which is NOT perishable, is used at a steady rate of 300 bottles/month. The sauce can be produced at a rate of 50 bottles/day. The kitchen where they are produced operates 240 days a year. Setup costs are $35 for a run of sauce, and holding costs are $.50 per bottle per year. Set up time for each production run of hot sauce is 2 days. What is the total inventory cost for this production quantity? (Note: you may be off
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Practical Management Science
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