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Food bags Kellam Images prints snack food bags on long rolls of plastic film. The plant operates 250 days a year. The daily production capacity is 6000 bags, and the daily demand is 3500 bags sold at $2 each. The cost to set up the design for printing is $300. The holding cost is estimated at 1% of the price of a bag per day. To get accurate final answers, do not round your intermediate results to less than 2 decimal places. A) What is the optimal production lot-size (economic production quantity, EPQ)? Round your final answer to the nearest integer. (a) 250,998 (b) 162,019 (c) 15,875 (d) 10,247 B) What is the optimal number of production runs per year i.e., optimal production frequency? Round your final answer to the nearest integer. (a) 3 (b) 5 (c) 55 (d) 85 C) What is the optimal time between set-ups (i.e., optimal cycle time) in days? Round your final answer to the nearest integer. (a) 2 (b) 5 (c) 27 (d) 42 D) Find the optimal (minimum) total annual cost. Round your final answer to the nearest integer. (a) $2092 (b) $3240 (c) $33,072 (d) $51,235 E) Find the optimal maximum inventory. Round your final answer to the nearest integer. 4 (a) 6614 (b) 4270 (c) 104,583 (d) 67,508 F) Find the optimal average inventory. Round your final answer to the nearest integer. (a) 2135 (b) 3307 (c) 33,754 (d) 55,292
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