Louisiana Specialty Foods can produce its famous meat pies at a rate of 1650 cases of 48 pies each per day.The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day.The cost of setup,cleanup,idle time in transition from other products to pies,etc. ,is $320.Annual holding costs are $11.50 per case.Assume 250 days per year.
(a)Determine the optimum production run (batch size).
(b)Determine the number of production runs per year.
(c)Determine maximum inventory.
(d)Determine total inventory-related (setup and carrying)costs per year (rounded to the nearest dollar).

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The Answer of Louisiana Specialty Foods can produce its famous meat pies at a rate of 1650 cases of 48 pies each per day.The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day.The cost of setup,cleanup,idle time in transition from other products to pies,etc. ,is $320.Annual holding costs are $11.50 per case.Assume 250 days per year.
(a)Determine the optimum production run (batch size).
(b)Determine the number of production runs per year.
(c)Determine maximum inventory.
(d)Determine total inventory-related (setup and carrying)costs per year (rounded to the nearest dollar).

Louisiana Specialty Foods Can Produce Its Famous Meat Pies at a Rate