Question: nnual demand for an item is 4 0 , 0 0 0 units. The setup cost per production run is $ 5 0 . The

nnual demand for an item is 40,000 units. The setup cost per production run is $50. The cost to hold an item in inventory for one year is $5. You can produce 2,500 items per day. You operate 250 days per year. What is the EPQ?

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