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Finite Production Model (15 8 7 Points): If a CD manufacturing company produces a variety of different CDs for computers. The CDs are produced at

  Finite Production Model (15 8 7 Points): If a CD manufacturing company produces a variety of different CDs for computers. The CDs are produced at a rate of 200,000 per day and shipped out at a rate of 20,000 per day. The CDs are produced in batches. Each CD cost the company 20 cents, and the holding costs are based on a 20 percent annual interest rate. Shortages are not permitted. Each production run of a CD type requires re-calibration of the equipment. The company estimates that this calibration costs $180. (a) Find the optimal sizes of each production run and the cycle time.

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