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Montegut Manufacturing produces a product for which the annual dema nd is 10,000 units. Production averages 100 units per day, while demand is 40 units
Montegut Manufacturing produces a product for which the annual demand is 10,000 units. Production averages 100 units per day, while demand is 40 units per day. Holding costs are $2.00 per unit per year, and setup cost is $200.00. (a) If the firm wishes to produce this product in economic batches, what size batch should be used?
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