Question: A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an annual demand of

A production facility is trying to determine the best batch size for an item that is produced intermittently. This item has an annual demand of 1,000 units, an annual carrying cost of $10 per unit, and a setup cost of $400. They operate 50 weeks per year, and can produce 40 units per week. What is the best batch size for this item?
Answer
400
800
283

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