A chemical firm produces sodium bisulfate in 100-pound bags….
A chemical firm produces sodium bisulfate in 100-pound bags. Demand for the product is 35 tons per day. The capacity for producing the product is 160,000 pounds per day. Setup costs are $250, and storage and annual holding costs are $7.30 per bag. The firm operates 365 days per year. (Note: 1 ton = 2000 pounds). How many bags per run are optimal? How many runs per year would there be? What is the average number of bags in inventory given the optimal lot size? Show all work.