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How many tires should be manufactured per production run

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Reference no: EM131563981

Question: The demand for the Super Titan tires is 1,000,000/year. The setup cost for each production run is $4000, and the manufacturing cost is $20/tire. The cost of storing each tire over the year is $2. Assuming uniformity of demand throughout the year and instantaneous production, determine how many tires should be manufactured per production run in order to keep the production cost to a minimum.

Reference no: EM131563981

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