Question: Given the below data, calculate the optimal production batch size, the annual set up and holding costs for the optimal policy. Production rate, P 5,000

  1. Given the below data, calculate the optimal production batch size, the annual set up and holding costs for the optimal policy.

Production rate, P

5,000

Annual Demand, D

3,000 units per year

Set up cost, S

1,000

Holding cost, h

24 percent

Unit cost, C

$250 per unit

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