Disparity between the production and usage rates

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Reference no: EM13951270

A company manufacturers hair dryers. It buys some of the components, but it makes the heating element, which it can be produce at a rate of 800 per day. Hair dryers are assembled daily, 250 days a year, at a rate of 300 per day. Because of the disparity between the production and usage rates, the heating elements are periodically produced in batches of 2,000 units.

Reference no: EM13951270

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