How many production runs will be made per year

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Reference no: EM131818353

ABC Co. Can manufactures a subcomponent at the rate of 700 per day when required. Its annual demand for this item is 80000 units. Assume 250 working days per year. Holding cost is 20$ per unit year. Set-up cost is 1000 per set up Find:

a) Economic production order quantity

b) How many production runs will be made per year.

C) What will be maximum inventory level.

Reference no: EM131818353

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