### Calculate the production order quantity

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Montegut Manufacturing produces a product for which the annual demand is 10,000 units. Production averages 100 per day, while demand is 40 per day. Holding costs are \$2.00 per unit per year; set-up costs \$200.00.

Calculate the production order quantity (POQ)? Using the POQ, calculate the maximum inventory What is the annual Ordering Cost and Holding (Carrying) Cost?

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