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QUESTION 1 A manufacturer produces an item with a production capacity of 9 4 6 units per 7 - hour shift. The annual demand of
QUESTION
A manufacturer produces an item with a production capacity of units per hour shift. The annual demand of the item is units. Preparation costs are $ each time an order is
placed; the carrying cost rate is $ per dollar of inventory per year and the units cost $ each. Assuming that the plant works one shift a day, days a week and weeks a year, what is the
optimal production order quantity? Write your answer to decimal place.
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