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The Friendly Sausage Factory: Inventory problem

The Friendly Sausage Factory can produce hot dogs at a rate of 5,000 per day. The company supplies hot dogs to local restaurants at a steady rate of 250 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. Find:

A) The optimal run size
B) The number of runs per year
C) The length (in days) of a run.

Solution Summary

This posting contains solution to following inventory control problem of The Friendly Sausage Factory