Discussion:
Q: The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,000 per day. FSF supplies hot dogs to local restaurants at a steady rate of 260 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 295 days a year.
a. Find the optimal run size.
b. Find the number of runs per year.
c. Find the length (in days) of a run.