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1. A cereal manufacturer makes its own toy-prices, which are then put into its boxes. While the toy-price manufacturing process is continuous, the cereal is

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1. A cereal manufacturer makes its own toy-prices, which are then put into its boxes. While the toy-price manufacturing process is continuous, the cereal is intermittent flow. Data on the cereal production appears below. Annual demand (D) = 50,000 units Setup cost (S) = $85 per batch Holding cost = $.20 per unit per year Daily subassembly production rate = 1,000 Daily subassembly usage rate = 200 (d) What is the average inventory for this problem? (e) What is the total annual inventory cost (holding plus setup) of the optimal behavior in this

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