Problemthe friendly sausage factory fsf can produce hot, Ask an Expert

Management Studies

Problem:

The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 240 per day. The cost to prepare the equipment for producing hot dogs is $66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year.

Question 1) Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Question 2) Find the number of runs per year. (Round your answer to the nearest whole number.)

Question 3) Find the length (in days) of a run.

Solve the given numerical problem and illustrate step by step calculation.

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M91149830

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