Operations and Product Management

The friendly Sausage factory (FSF) can produce hot dogs at a rate of 5,000 units per day. FSF supplied hot dogs to local restaurant at a steady state rate of 250 per day. The cost to prepare equipment for producing hot dog is $66. Annual holding cost is 45 cents per hot dog. The factory operates 300 days a year. Find

a)     The optimal run size.

b)    The number of runs per year.

c)     The length (in days) of a run.