Find optimal order size and minimum annual total cost


Kroft foods makes cheese to supply to stores in its area. THe dairy can make 350 pounds of cheese per day and the demand at area stores is 205 pounds per day. Each time the dairy makes cheese, it costs 175 to set up production process. The annual cost of carrying a pound of cheese in a refrigerated storage area is $12. determine the optimal order size and the minimum annual total inventory cost

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Operation Management: Find optimal order size and minimum annual total cost
Reference No:- TGS088294

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