With a setup cost of $100 and a holding cost per week of $1, Speaker Kits, Inc.,

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With a setup cost of $100 and a holding cost per week of $1, Speaker Kits, Inc., wants to examine its cost for component B, with lot sizes based on an EOQ criteria.

APPROACH c Using the same cost and production schedule as in Example 4, we determine net requirements and EOQ lot sizes.

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