Plasfib is a manufacturer of synthetic fiber used for, Ask an Expert

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PlasFib is a manufacturer of synthetic fiber used for making furniture upholstery. When it is running, the line produces fiber at the rate of 100 pounds per hour. The fiber is sold constantly at 30.000 pounds per year. Each pound of fiber costs $5 and PlasFib uses an interest rate of 20 percent per year for holding cost. The setup cost for producing a batch is S200. What is the batch size that PlasFib should produce? How many days of demand does this translate into? (Assume that 1 year = 52 weeks and 1 week = 5 working days = 40 working hours).

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91930760

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