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The production manager must determine the processing sequence for 7 jobs through the grinding and debarring departments. The same sequence will be followed in both departments. The manager's goal is to move the jobs through the two departments as quickly as possible. The foreman wants the SPT rule to be used to minimize the work-in-process inventory in his department.
Processing Time (Hours)
Job Grinding Deburring A 3 6 B 2 4 C 1 5 D 4 3 E 9 4 F 8 7 G 6 2
If annual demand is 24,000 units, orders are placed every 0.5 months, and the cost to place an order is $50, what is the annual ordering cost?
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