Louisiana Specialty Foods can produce its famous meat pies at a rate of 1650 cases of pies each per day. The firm distributes (demand) the pies to regional stores and restaurants at a steady rate of 250 cases per day. The cost of setup, cleanup, idle time in transition from other products to pies, etc., is $320. Annual holding costs are $11.50 per case. The internal expense per/pie is $2.59. Assume 250 days per year. 1. Determine the optimum production run (batch size) [Select] 2. What is the maximum inventory level? [Select ] 3. What is the average inventory? [Select] 4. Determine the number of production runs per year [Select] 5. Determine total inventory-related costs per year [Select] 6. What is the total cost, including the cost of the pies? [Select]
Louisiana Specialty Foods can produce its famous meat pies at a rate of 1650 cases of pies each per day. The firm distributes (demand) the pies to regional stores and restaurants at a steady rate of 250 cases per day. The cost of setup, cleanup, idle time in transition from other products to pies, etc., is $320. Annual holding costs are $11.50 per case. The internal expense per/pie is $2.59. Assume 250 days per year. 1. Determine the optimum production run (batch size) [Select] 2. What is the maximum inventory level? [Select ] 3. What is the average inventory? [Select] 4. Determine the number of production runs per year [Select] 5. Determine total inventory-related costs per year [Select] 6. What is the total cost, including the cost of the pies? [Select]
Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
Problem 20P: Julie James is opening a lemonade stand. She believes the fixed cost per week of running the stand...
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![Louisiana Specialty Foods can produce its famous meat pies at a rate of 1650
cases of pies each per day. The firm distributes (demand) the pies to regional
stores and restaurants at a steady rate of 250 cases per day. The cost of setup,
cleanup, idle time in transition from other products to pies, etc., is $320. Annual
holding costs are $11.50 per case. The internal expense per/pie is $2.59.
Assume 250 days per year.
1. Determine the optimum production run (batch size)
[Select]
2. What is the maximum inventory level? [Select]
3. What is the average inventory? [Select]
4. Determine the number of production runs per year
[Select]
5. Determine total inventory-related costs per year
[Select]
6. What is the total cost, including the cost of the pies?
[Select]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F65e4af41-82ac-4b6f-87f0-be9a60c28a73%2Ff61a87b2-092e-4df3-a5a3-50a9228d2bd0%2Fnhmomm_processed.png&w=3840&q=75)
Transcribed Image Text:Louisiana Specialty Foods can produce its famous meat pies at a rate of 1650
cases of pies each per day. The firm distributes (demand) the pies to regional
stores and restaurants at a steady rate of 250 cases per day. The cost of setup,
cleanup, idle time in transition from other products to pies, etc., is $320. Annual
holding costs are $11.50 per case. The internal expense per/pie is $2.59.
Assume 250 days per year.
1. Determine the optimum production run (batch size)
[Select]
2. What is the maximum inventory level? [Select]
3. What is the average inventory? [Select]
4. Determine the number of production runs per year
[Select]
5. Determine total inventory-related costs per year
[Select]
6. What is the total cost, including the cost of the pies?
[Select]
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