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A customer has been ordering 5 0 0 0 unit at the rate of 1 0 0 0 unit per order during last year. The
A customer has been ordering unit at the rate of unit per order during last year. The production cost is Rs per unit Rs for material and
labor and Rs overhead costs. It costs Rs to set up for one run of units and inventory carrying may buy at least units this year, the company would like to avoid making five different production runs. Determine the most economic production run.
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