A company has an annual demand for a product of 2000 units, a carrying cost of $20

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A company has an annual demand for a product of 2000 units, a carrying cost of $20 per unit per year, and a setup cost of $100. Through a program of setup reduction, the setup cost is reduced to $20. Run costs are $2 per unit. Calculate:

a. The EOQ before setup reduction.

b. The EOQ after setup reduction.

c. The total and unit cost before and after setup reduction.

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Introduction To Materials Management

ISBN: 978-9386873248

8th edition

Authors: Arnold J. R. Tony, Gatewood Ann K., M. Clive Lloyd N. Chapman Stephen

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Question Posted: Jul 01, 2019 08:46 AM

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A company has an annual demand for a product of 2000 units, a carrying cost of $20

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a Annual demand 2000 units Carrying Cost 20 per unityear Setup Cost 100setup Run Cost ...View the full answer

Introduction To Materials Management

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