The optimal total production quantity per production cycle


The FS factory can produce wieners at a rate of 4,000 per day. FS supplies wieners to local stores at a steady rate of 250 per day. The cost of preparing the equipment for producing wieners is $22. Annual holding costs are 20 cents per wiener. The factory operates 300 days a year. Find:

The optimal total production quantity per production cycle and the corresponding maximal on-hand stock level.

The optimal number of production cycles per year.

The optimal length of each production cycle.

Request for Solution File

Ask an Expert for Answer!!
Operation Management: The optimal total production quantity per production cycle
Reference No:- TGS02918871

Expected delivery within 24 Hours