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Louisiana Specialty Foods can produce its famous meat pies at a rate.pdf

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Louisiana Specialty Foods can produce 1650 cases of meat pies per day but can only distribute 250 cases per day, with a $320 daily setup cost and $11.50 annual holding cost per case over 250 days. The maximum inventory that should be held is the amount that balances the production and distribution rates.

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Louisiana Specialty Foods can produce its famous meat pies at a rate of 1650 cases of 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. Determine maximum inventory. Select one:

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