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What will be the optimal production run quantity

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Question

A bike assembly line in a manufacturing system uses 400 pedals per day. Pedals can be produced at a rate of 800 units per day. The shop operates 20 days a month. Assume that demand is uniform throughout the month. Setup cost is $90 for a run, and holding cost is $1 per year. What will be the optimal production run quantity (rounded to the next whole number)?

Reference no: EM133446866

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