Final answer:
The optimal number of bags per run for the chemical firm is 64.
Step-by-step explanation:
To determine the number of bags per run that is optimal,we need to calculate the economic order quantity (EOQ). EOQ can be calculated using the formula: EOQ = sqrt((2 x Demand x Setup Cost) / (Storage and Handling Cost x Production Capacity)). Plugging in the given values, EOQ = sqrt((2 x 20 x 200 x 100) / (5 x 50 x 1000)). Simplifying this, EOQ = sqrt(4000), which is approximately 63.24.
Since we cannot have fractional bags, we round this value up to the nearest whole number, which is 64. Therefore, the optimal number of bags per run is 64.