Write the equation for epq and label the variable

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A factory has a production plan calling for 20,000 products/year. the cost to process a single work order is $50 and the cost to hold one unit of one product in stock for one year is $5. the production rate is 100 units/day and the usage rate is 60 unit/day.

1. Write the equation for epq and label the variable.

2. Compute the factory EPQ

3. What is the maximun level of finished goods inventory?

Reference no: EM132154113

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