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A large bakery produces cakes for freezing and subsequent sale. The bakery can produce cakes at a rate of 484 cakes per day. The bakery sets up the cake-production operation and produces until a predetermined number (Q) has been reached. 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 54,600 cakes.

Assume there are 364 days and 52 weeks in a year.

What is the "daily" demand rate?

Answer :

The "daily" demand rate for frozen cakes at the bakery is 150 cakes per day, based on the annual demand of 54,600 cakes divided by 364 operating days.

The "daily" demand rate for frozen cakes at the bakery is calculated by taking the annual demand and dividing it by the number of operating days in a year. Given the annual demand for frozen cakes is 54,600 cakes, and assuming the bakery operates 364 days a year, the calculation would be:

54,600 cakes \/ 364 days = 150 cakes per day

This daily demand rate indicates the average number of cakes the bakery needs to produce each day to meet the periodic annual demand.

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Rewritten by : Barada

Answer:

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