# A shop that makes candles offe

*label*Mathematics

*timer*Asked: Nov 5th, 2015

**Question description**

A shop that makes candles offers a scented candle, which has a monthly demand
of 360 boxes. Candles can be produced at a rate of 36 boxes per day. The shop operates 20
days a month. Assume that demand is uniform throughout the month. Setup cost is $60 for a
run, and holding cost is $2 per box on a monthly basis.
Determine the following:

What should be the optimum quantity of scented candles to produce?

What is the maximum inventory achieved during a production run?

What is the average inventory of scented candles throughout the year?

What is the cycle time?

What is the length of a production run in days?

What is the total annual cost of producing and storing the scented candles?