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The demand for fruit juice of BluePrint Company is about 5,000 liters per year, and BluePrint can produce juice at the rate of 50,000

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The demand for fruit juice of BluePrint Company is about 5,000 liters per year, and BluePrint can produce juice at the rate of 50,000 liters per year. Setup cost is $200. The unit cost is $8, and the inventory holding cost is 18 percent annually. If the demand for fruit juice exceeds the available inventory, it is backlogged. A backlog accrues two types of cost-loss of goodwill $0.05 per liter short and shortage penalty $9 per liter short per year. Calculate: Economic production quantity, the optimal maximum backorder level, Annual total cost of inventory. Cycle time, Time to produce Q units, Time to deplete maximum inventory. (9 points)

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