# A chemical firm produces sodium bisulfate in 100-pound bags

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 A chemical firm produces sodium bisulfate in 100-pound bags. Demand for this product is 25 tons per day. The capacity for producing the product is 50 tons per day. Setup costs \$100, and storage and handling costs are \$3 per ton a year. The firm operates 200 days a year. (Note: 1 ton = 2,000 pounds.)

 a. How many bags per run are optimal? (Round your answer to the nearest whole number.)

 Number of bags [removed]

 b. What would the average inventory be for this lot size? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

 Average inventory [removed] bags

 c. Determine the approximate length of a production run, in days. (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

 Run length [removed] days

 d. About how many runs per year would there be? (Round your intermediate calculations to 2 decimal places and final answer to the nearest whole number.)

 Run per year [removed]

 e. How much could the company save annually if the setup cost could be reduced to \$29 per run? (Round your intermediate calculations and final answer to 2 decimal places. Omit the "\$" sign in your response.)

 Savings would be \$ [removed]

• 6 years ago
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