How much could be saved by converting to your production

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Reference no: EM13918350

Assume that you are reviewing the production lot size decision associated with a produc- tion operation where P = 8000 units per year, D = 2000 units per year, Co = $300, and Ch = $1.60 per unit per year. Also assume that current practice calls for production runs of 500 units every three months. Would you recommend changing the current production lot size? Why or why not? How much could be saved by converting to your production lot size recommendation?

Reference no: EM13918350

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