The annual demand for a certain part is 2000 units per year. The part is produced in

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The annual demand for a certain part is 2000 units per year. The part is produced in a batch model manufacturing system. Annual holding cost per piece is $3.00. It takes 2 hours to set up the machine to produce the part, and cost of system downtime is $150/hr. Determine
(a) The most economical batch quantity for this part and
(b) The associated total inventory cost.
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