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Posted: March 21st, 2024
Need math help with a shop that makes candles
Question description
A shop that makes candles offers a scented candle, which has a monthly demand
of 360 boxes. Candles can be produced at a rate of 36 boxes per day. The shop operates 20
days a month. Assume that demand is uniform throughout the month. Setup cost is $60 for a
run, and holding cost is $2 per box on a monthly basis.
Determine the following: What should be the optimum quantity of scented candles to produce?What is the maximum inventory achieved during a production run?What is the average inventory of scented candles throughout the year?What is the cycle time? What is the length of a production run in days?What is the total annual cost of producing and storing the scented candles?
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