A certain cement product has an almost constant demand of 125,000 bags per month. The plant can produce 1,200 bags per hour and each month has 200 production hours. The setup cost is $700 per run. Holding cost of a cement bag is $0.15 per year. What will be the best production quantity of this product in each production run?

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To determine the best production quantity also known as the economic production quantity o... View the full answer