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RaceOne Motors is a car manufacturer. It can produce components at a rate of 300 per day, and it uses components at a rate of
RaceOne Motors is a car manufacturer. It can produce components at a rate of 300 per day, and it uses components at a rate of 12,500 per year (of 250 working days). Holding costs are $2 per item per year, and setup costs are $30 per order.
What is optimal cycle time and the run time?
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