Louisiana Specialty Foods Can Produce Their Famous Meat Pies at a Rate

question 145

Essay

Louisiana Specialty Foods can produce their famous meat pies at a rate of 1650 cases of 48 pies each per day. The firm distributes the pies to regional stores and restaurants at a steady rate of 250 cases per day. The cost of setup, cleanup, idle time in transition from other products to pies, etc., is $320. Annual holding costs are $11.50 per case. Assume 250 days per year.
a. Determine the optimum production run.
b. Determine the number of production runs per year.
c. Determine maximum inventory.
d. Determine total inventory-related (setup and carrying) costs per year.

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Definitions:

Foreign Direct Investment

An investment made by a company or individual in one country in business interests in another country, in the form of establishing business operations or acquiring business assets.

Internationalization Process

The process through which a company expands its operations beyond its national borders into the international market.

Joint Venture

A business arrangement where two or more parties agree to pool their resources for the purpose of accomplishing a specific task, project, or any other business activity, sharing the risks and rewards.

Authorized

Having official permission or approval to do something.