Explore BrainMass
Share

# Calculating Optimum run size and number of runs per year

This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF suppies hot dogs to local restaurants at a steady rate of 250 per day. The cost to prepare the equipment for producting hot dogs is \$66. Annual holding costs are 45 cents per hot dog. The factory operates 300 days a year. Find:

a) The optimum run size
b) The number of runs per year.
c) The length (in days) of a run.

© BrainMass Inc. brainmass.com March 21, 2019, 6:57 pm ad1c9bdddf
https://brainmass.com/math/graphs-and-functions/calculating-optimum-run-size-number-runs-year-273939

#### Solution Preview

Solution:

a) The optimum run size
Annual Demand=Q=300*250=75000 units
S = estimated cost of setting up a production ...

#### Solution Summary

Solution describes the steps to find out optimum run size, number of runs per years and lenght of a run.

\$2.19