Images prints snack food bags on long rolls of plastic film

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Reference no: EM13902443

Kellam Images prints snack food bags on long rolls of plastic film. The plant operates 260 days a year. The daily production rate is 6000 bags, and the daily demand is 3600 bags. The cost to set up the design for printing is $325. The holding cost is estimated at 2 cents per bag per year.

a. What is the recommended production lot size?

b. If there is a five-day lead time to set up the line, what is the recommended reorder point?

c. How long is each production run?

d. What is the TC for the recommended production plan?

e. Sketch the inventory level over time, including the highest inventory level, production run time, and cycle time.

Reference no: EM13902443

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