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An auto company needs to product 1 5 , 0 0 0 car engines. Each is valued at $ 5 , 0 0 0 .

An auto company needs to product 15,000 car engines. Each is valued at $5,000. The plant has capacity to produce 28,000 engines per year. It cost $12,000 to setup a production run, and the annual holding cost 20% of inventory. Determine the optimal production run size, # of runs / year and inventory investment.
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