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The manager of a bottle-filling plant needs to decide the economic production quantity in a production run for a drink with reasonably constant demand of

The manager of a bottle-filling plant needs to decide the economic production quantity in a production run for a drink with reasonably constant demand of 90,000 per month. The plant fills bottles at a rate of 2,000 bottles per hour. A month has 300 production hours. The cost of setup is $120 per run. Holding cost $0.06 per bottle per month. [4 Marks]

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