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Kellam Images prints snack food bags on long rolls of plastic film. The plant operates 250 days a year. The daily production rate is 6000 bags, and the daily demand is 3500 bags. The cost to set up the design for printing is $300. The holding cost is estimated at 2 cents per bag.

a. What is the recommended production lot size?

b. If there is a five-day lead time to set up the line, what is the recommended reorder point?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92537624

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