Question: The cost to set up for producing a standard component is approximately $ 3 0 0 . Once set up they can produce at a

The cost to set up for producing a standard component is approximately $300. Once set up they can produce at a rate of approximately 20 units/day (5,000 units per year) at $100 each.
Annual demand is forecast at 2,000 units. If the firm uses a 30% annual rate for holding inventory: (Choose the nearest value from the given answers)
What is the most economical lot size to produce (ERL)?

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