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So we install storage of capacity 3000lbs.
This will increase the daily production.
Daily production= 30,000x4= 120,000 lbs
Thus there is increase of 12,000lbs/day after adding a storage tank.
3a. Additional fixtures of $20,000 for Filtration process and $10,000 for Extraction should be done to maximize the output...
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The cost of construction of tank is given as $30/lbs. Hence the total cost for construction of storage tank will be 30 x 3000= $90,000, and the production will increase to 120,000 lbs/day.
When additional fixtures are added in Filtration and Extraction process the setup time will reduce by 50% i.e. the setup time for Extraction will be 10 min and that for Filtration will be 15 min...
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