Business, 11.04.2020 00:16 leeenaaa95

Richardson Paper manufacturers produces a high quality and large size paper. The cost of prepare a production run for this paper is $10 per run. The inventory carrying cost for this paper is $1.00 per square yard per year. The annual demand for this paper is 6,000 square yards. The manufacturing facility produces this paper 300 days per year and the plant can produce the paper at a rate of 60 square yards per day.

a. What is the optimum quantity of paper to produce?
b. What is the maximum inventory achieved during a production run?
C. How many production runs are needed to meet the annual demand?
d. What is the length of a production run?
e. What is the total annual cost of producing and storing the paper?

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Richardson Paper manufacturers produces a high quality and large size paper. The cost of prepare a p...

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