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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) What percentage of time during the year will this item be produced.
b) What is the annual cost for ordering and holding inventory.
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