Question

The Friendly Sausage Factory (FSF) can produce hot dogs at a rate of 5,250 per day. FSF supplies hot dogs to local restaurants at a steady rate of 380 per day. The cost to prepare the equipment for producing hot dogs is $67. Annual holding costs are 49 cents per hot dog. The factory operates 289 days a year.

Please show work :) thank you.

1.Find the optimal run size.

2.Find the number of runs per year.

3.Find the length (in days) of a run.

Answer #1

Number of hot dogs that FSF can produce per day
**(b)** = 5250

Number of hot dogs that FSF supplies to local restaurants per
day **(c)** = 380

Cost to prepare equipment **(S)** = $67

Annual holding cost **(H)** = $0.49 per day

The number of days that the factory operates per year
**(T)** = 289

**Ans 1) Optimal run size (Q) =
**** **

=

=

= 5480.1832 * 1.0382

= 5689.526 hot dogs

**= 5690 hot dogs (approx)**

**Ans 2)**

Cycle time = Q / c

= 5690 / 380

=14.97 = 15 days (approx)

**Number of runs per year = T / Cycle time**

= 289 / 15

= 19 (approx)

**Ans 3)**

Length of a run = Q / b

= 5690 / 5250

= 1.0838

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