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Saram Lanka makes winch components for its different product lines. The firm operates its production facility 2 5 0 days per year. It has orders

Saram Lanka makes winch components for its different product lines. The firm operates its production facility 250 days per year. It has orders for about 12,000 winch components per year and has the capability of producing 100 per day. Setting up the winch production costs $50. The cost of each winch component is $1. The holding cost is $0.10 per winch component per year. The firms operations manager wants to calculate the:
a) Economic production quantity
b) Annual holding costs
c) Annual ordering costs
d) Total inventory costs

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