Wegmans Bakery produces cheesecake for sale. The bakery which operates 5 days per week and 52 weeks per year can produce cake at the rate of 40 cakes per day. The bakery sets up cake production operation and produces the predetermined quantity Q has been produced. The setup cost for a production run of cheesecake is $200, The holding cost is $10 per year. The annual demand for cheesecake is constant during the year and is equal to 3900. Determine the following Round answers to the nearest whole number. (a) the optimal production run quantity (Q) (b) the total annual inventory cost (AHC AOC) (C) the optimal number of production runs per year. (d) The run length (production run time)

Wegmans Bakery produces cheesecake for sale. The bakery which operates 5 days per week and 52 weeks per year can produce cake at the rate of 40 cakes per day. The bakery sets up cake production operation and produces the predetermined quantity Q has been produced. The setup cost for a production run of cheesecake is $200, The holding cost is $10 per year. The annual demand for cheesecake is constant during the year and is equal to 3900. Determine the following Round answers to the nearest whole number. (a) the optimal production run quantity (Q) (b) the total annual inventory cost (AHC AOC) (C) the optimal number of production runs per year. (d) The run length (production run time)

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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