A part is produced in batches size of 3000 pieces. Annual demand is 60,000 pieces, and piece

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A part is produced in batches size of 3000 pieces. Annual demand is 60,000 pieces, and piece cost is $5.00. Setup time to run a batch is 3.0 hr, cost of downtime on the affected equipment is figured at $200/hr, and annual holding cost rate is 30%. What would the annual savings be if the product were produced in the economic order quantity?
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