The Simple Simon Bakery produces fruit pies for freezing and subsequent sale. The bakery, which operates 5 days per week, 52 weeks per year, can produce pies at the rate of 64 pies per day. The bakery sets up the pie production operation and produces until a predetermined number
( Q) of pies has been produced. When not producing pies, the bakery uses its personnel and facil- ities for producing other bakery items. The setup cost for a production run of fruit pies is $500. The cost of holding frozen pies in storage is $5 per pie per year. The annual demand for frozen fruit pies, which is constant over time, is 5,000 pies. Determine the following:
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The optimal production run quantity ( Q)
The total annual inventory costs
The optimal number of production runs per year
The optimal cycle time (time between run starts)
The run length, in working days
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