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A computer manufacturer can produce laptops at the rate of 100 per day. The manufacturer supplies its laptops to various computer retail outlets at a
A computer manufacturer can produce laptops at the rate of 100 per day. The manufacturer supplies its laptops to various computer retail outlets at a rate 65 per day. Set up cost for a production run is $500. Carrying cost is $125 per laptop a year. Assume the manufacturer operates 300 days a year. a. What is the optimal production run size? b. What is the minimum total annual cost for carrying and set up? c. What is the length of a production run?
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