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What is the length of a production run

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Question - A sausage factory can produce wieners at a rate of 500 kg per day. It supplies wieners to local stores and restaurants at a steady rate of 100 kg per day. The cost to prepare the equipment for producing European wieners is $12. Annual holding cost is $4/kg of wieners. The factory operates 300 days a year. What is the optimal production run quantity (EPQ)? What is the length (in days) of a production run?

Reference no: EM133130576

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