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The cost to produce a case is 775 and the holding cost is 8

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ACHumko supplies Walmart with bottled oil. Walmart has a contract for 330,000 cases of product per year. ACH production line runs 260 days per year and can produce 6000 cases per day. The setup costs are $3000 in lost production time. The cost to produce a case is $7.75 and the holding cost is 8% of the production cost. What is the daily demand rate?

1269

6000

2138

55

Reference no: EM13633628

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