Determine economic run quantity

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Q. Dine corporation is both a maker also a user of brass couplings. Firm operates 220 days a year also uses couplings at a steady rate of 50 per day. Coupling can be marked at a rate of 200 per day. Annual storage cost is $2 per coupling also machine cost is $70 per run.

a) Determine economic run quantity.

b) Approximately elucidate how many runs per year will there be?

c) Compute maximum inventory level

 

 

Reference no: EM1376669

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