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Acme stamping produces seat brackets for a major manufacturer of stadium seating. They sell an average of 67,000 brackets per year. Their stamping machine operates for 8 hours per day, 250 days per year and can produce 150 brackets per hour. It costs them $340 to set up the stamping machine for a production run. The brackets cost $0.47 each to make, and Acme uses 20% of the unit cost to estimate the annual inventory holding cost. Calculate the economic production quantity for seat brackets.

Operation Management, Management Studies

  • Category:- Operation Management
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