Find the number of items that should be produced

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Reference no: EM131793715

Inventory cost model

A company needs to produce 288,000 items per year. Production costs are $1500 to prepare for a production run and $30 for each item produced.

Inventory costs are $1.50 per year for each item stored. Find the number of items that should be produced in each run so that the total costs of production and storage are minimum.

Reference no: EM131793715

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