Question: James has an in - house production facility, whose daily production capacity is 2 0 0 units per day. James has a daily demand of
James has an inhouse production facility, whose daily production capacity is units per day. James has a daily demand of units per day. Next year, James plans to upgrade his production facility to a capacity of units per day. Suppose the daily demand, the fixed setup cost, and the holding cost remain the same. What will happen to the economic production quantity next year, as compared to this year?
a Increase by approximately
b Decrease by approximately
c Increase by
d Decrease by
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