6-13The manufacturer of Snail Hail, a garden molilusk pesticide, distributes its prod- t from a plan

6-13The manufacturer of Snail Hail, a garden molilusk pesticide, distributes its prod- t from a plant warehouse. The plant has the capacity to produce 1,000 tons per year at a variable cost of $100 per ton. However, only 200 tons of Snail Hail are sold an- nually. The cost of setting up a production run is $2,000. The net cost of holding the highly volatile Snail Hail in inventory is $.40 per dollar value per year. (a) Determine the economic production quantity. (b) How long is each inventory cycle? (c) How long will a production run last?

6-13The manufacturer of Snail Hail, a garden molilusk pesticide, distributes its prod- t from a plant warehouse. The plant has the capacity to produce 1,000 tons per year at a variable cost of $100 per ton. However, only 200 tons of Snail Hail are sold an- nually. The cost of setting up a production run is $2,000. The net cost of holding the highly volatile Snail Hail in inventory is $.40 per dollar value per year. (a) Determine the economic production quantity. (b) How long is each inventory cycle? (c) How long will a production run last?