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17 June, 00:33

A large bakery makes cakes for freezing and subsequent sale. The bakery can produce cakes at the rate of 484 cakes per day. The bakery sets up the cake-production operation and produces until a predetermined number (Q) have been produced. When not producing cakes, the bakery uses its personnel and facilities for producing other bakery items. The setup cost for a production run of cakes is $100. The cost of holding frozen cakes in storage is $9 per cake per year. The annual demand for frozen cakes, which is constant over time, is 54600 cakes. Assume 364 days a year and 52 weeks a year. What is the "daily" demand rate

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  1. 17 June, 00:36
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    150

    Explanation:

    The computation of the daily demand rate is shown below:

    Daily demand rate = Annual demand for frozen cakes : total number of days in a year

    = 54,600 cakes : 364 days

    = 150

    By dividing the annual demand from the total number of days in a year we can get the daily demand rate and the same is shown above
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