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12-4 (Algo) A toy manufacturer uses 50,820 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it
12-4 (Algo) A toy manufacturer uses 50,820 rubber wheels per year for its popular dump truck series. The firm makes its own wheels, which it can produce at a rate of 1,000 per day. The toy trucks are assembled uniformly over the entire year. Carrying cost is $1.50 per wheel per year. Setup cost for a production run is $44. The firm operates 242 days per year. Determine the following: a. Optimal run size (Round your answer to a whole number, following normal rules of rounding.) EPQ b. Use your final answer from part a to determine minimum total annual cost for carrying and setup. (Round your answer to a whole number.) Total Annual Inventory Cost c. Cycle time
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