The frozen fish division of a restaurant supply house operates 240 days per year. Frozen fish sales by the supply house is known to be 48,000 packages per year. Packages are produced in lots, each package costing $1. 25 to produce and $45 for each setup prior to producing a lot of fish packages. It also costs 80% of the production cost to store each fish package in inventory for a year. With the current staff, the supply house can produce 800 packages a day. What is the optimal production quantity?.
