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A company consumes 12000 units of a particular item. The company has a production capacity of 60 units/day. The cost of each unit produced by the company is Rs.8. The setup and tooling up cost is Rs.96 per setup. The carrying charges are 15 % of cost per unit.
Determine;
a) Economic quantity to be manufactured in each batch
b) How frequently should the production runs be made.
c) Determine the production period.
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