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.

Required:

Question 1) Find the optimal run size.

Question 2) Find the number of runs per year.

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.:- M91167428

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