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M11.2 Greg Puliski is the production manager of Bearings USA, Inc, a small producer of metal parts. Bearings USA supplies Asheville Manufacturing, a larger
M11.2 Greg Puliski is the production manager of Bearings USA, Inc, a small producer of metal parts. Bearings USA supplies Asheville Manufacturing, a larger assembly company, with 10,000 wheel bearings each year. Bearings USA can produce 500 wheel bearings per day. Asheville Manufacturing uses 50 bearings each day and requires that exactly 50 bearings be shipped to its business each day from Bearings USA, Inc. The cost to set up the production process is $110, and it costs $1.75 to carry one bearing in inventory for one year a) What is the optimal economic production quantity? b) On average, how many setups are required per year (one decimal place)? c) What is the total cost per year (holding plus setup)?
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