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Problem 13-9 The Friendly Sausage Factory

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Problem 13-9

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 240 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 298 days a year.

a.Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number.)

Optimal run size

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Problem 13-31

A drugstore uses fixed-order cycles for many of the items it stocks. The manager wants a service level of .98. The order interval is 13 days, and lead time is 3 days. Average demand for one item is 70 units per day, and the standard deviation of demand is 8 units per day. Given the on-hand inventory at the reorder time for each order cycle shown in the following table.

Use Table.

CycleOn Hand139 211 3104

Determine the order quantities for cycles 1, 2, and 3: (Round your answers to the nearest whole number)

Cycle Units1 2 3

Image transcriptions

Problem 13-9 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 240 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 298 days a year. a. Find the optimal run size. (Do not round intermediate calculations. Round your answer to the nearest whole number.) Optimal run size |:|

 
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