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5. Given that a milling firm produces 1000 roller meal bags per day. Demand for the product is estimated at 400 bags per day while
5. Given that a milling firm produces 1000 roller meal bags per day. Demand for the product is estimated at 400 bags per day while Setup cost is at $100. If the firm operates 200 days a year and the carrying cost is $0.25 per bag per year, determine the a) Optimal run size (3) b) Minimum total annual cost for carrying and setup (3) c) the length of the production run (Run time) (2) d) how many times per year will the firm make its production orders (production runs per year)
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