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Montegut Manufacturing produces a product for which the annual demand is 4,000 units. Production averages 80 units per day. while demand is 20 units per

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Montegut Manufacturing produces a product for which the annual demand is 4,000 units. Production averages 80 units per day. while demand is 20 units per day. Holding costs are $2 per unit per year, and setup cost is $400. If the firm wishes to produce this product in economic batches, what size batch should be used? Q; = EPQ= (2xDxS) D: Annual Demand, H: Annual Unit Holding Cost, d: Daily Demand Rate, p: Daily Production Rate, S:Unit Setup/Ordering Cost 1522 1461 1352 O 1244 0 1122

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