What is economic production quantity

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C&A produces dog food in 20-pound bags. Monthly demand for C&A's dog food is 60,000 pounds. C&A has capacity to produce 180,000 20-pound bags per year. The setup cost to produce the dog food is $500. The holding cost is $5 per 20-pound bag per year. What is the economic production quantity?

Reference no: EM132190565

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