Question: The assumption about production setup costs simplifies things by considering it a fixed cost, regardless of the batch size. However, larger batches may require a
The assumption about production setup costs simplifies things by considering it a fixed cost, regardless of the batch size. However, larger batches may require a more complex setup, impacting costs. Additionally, the assumption that placing an order incurs a fixed cost might not hold, as actual costs can vary based on order size and associated expenses. Similarly, the assumption that inventory carrying costs remain constant regardless of stock quantity simplifies calculations, but actual costs can change based on storage and item quantities
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