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 perday. 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 facilitiesfor 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 frozenfruit pies, which is constant over time, is 5,000 pies. Determine The optimal number of production runs per year

Practical Management Science
6th Edition
ISBN:9781337406659
Author:WINSTON, Wayne L.
Publisher:WINSTON, Wayne L.
Chapter2: Introduction To Spreadsheet Modeling
Section: Chapter Questions
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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 facilities
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 optimal number of production runs per year

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