Healthy Plants Ltd. (HP) produces its premium plant food in 50-pound bags. Demand for the product is 11,000 pounds per week. HP operates fifty weeks per year and can produce 22,000 pounds per week. The setup cost is $230 and the annual holding cost rate is $0.70 per bag. Currently, HP produces its premium plant food in batches of 1,000,000 pounds. Correct answer. Your answer is correct. Calculate the maximum inventory level for HP according to its current operating policy.
Calculate the maximum inventory level for HP according to its current operating policy in pounds
Next, find the total annual costs of the operating policy in dollars rounded to 2 decimal places.