Question: Annual demand = 1 2 0 0 0 units ( constant ) Unit production cost = $ 1 0 Setup time = 1 hour Idle

Annual demand =12000 units (constant)
Unit production cost = $10
Setup time =1 hour
Idle time cost = $900 ; out of pocket setup cost=$100
Cost of capital =6% per year
Physical storage = $ 0.5 per month per unit
Optimal Batch Size? Annual Cost?

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