Question: Demand for a certain product is 2 5 , 0 0 0 units / yr . Unit cost = $ 1 0 . 0 0

Demand for a certain product is 25,000 units/yr. Unit cost = $10.00. Holding cost rate =30%/yr. Changeover (setup) time between products =10.0 hr, and downtime cost duringchangeover = $150/hr. Determine (a) economic order quantity, (b) total inventory costs.

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