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11. Wilson Footballs. Wilson Sporting Goods manufactures footballs with a labor-intensive production line in a factory in Ada, Ohio. Assume that D=6400 units per year,
11. Wilson Footballs. Wilson Sporting Goods manufactures footballs with a labor-intensive production line in a factory in Ada, Ohio. Assume that D=6400 units per year, Co=$100, and Ch=$2 per unit per year. LO 1,2 a. Compute the minimum cost production lot size for each of the following production rates: (i) 8000 units per year, (ii) 10,000 units per year, (iii) 32,000 units per year, and (iv) 100,000 units per year. b. Compute the EOQ recommended lot size using equation (10.5). Comparing the EOQ lot size to the various production lot sizes in part a, what two observations can you make about the relationship between the EOQ model and the production lot size model
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