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Given the following information: Annual demand (D) = 100,000 units Daily production rate = 2,000 units Setup cost (S) = $750 per occurrence Holding cost = $5 per unit If the company operates 250 days per year, a. What is the average inventory? b. Calculate the optimal production order quantity. c. What is the total inventory cost at this quantity?

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Operation Management, Management Studies

Category:- Operation Management
Reference No.:- M92605890

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