Question

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 250 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 300 days a year. Find

Answer 1

Answer: See explanation

Step-by-step explanation:

The remainder of the question:

a). The optimal run size

b) The number of runs per year

c) The length (in days) of a run.

From the question,

p = 5000

u = 250 hotdogs per day

D = 250 × 300 = 75000 hotdogs/year

S = $66

H = 45 cents = $0.45

a. The optimal run size

= (✓2DS/✓H)(✓p/✓-✓u)

= (✓2×75000×66/✓0.45)(✓5000/✓4750)

= 4812

b) The number of runs per year

This will be:

= D/Q

= 75000/4812

= 15.59

= 16 runs per year

c) The length (in days) of a run.

This'll be:

= 4812/5000

= 0.96

= 1 day