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A chemical firm produces sodium bisulphate in Demand for this product is 25 tons per day. The capacity for producing the product is 75 tons per day. Setup costs $1000, and storage and handling costs are $10 per ton a year. The firm operates 250 days a year. How many tons per run are optimal? What would the average inventory be for this lot? Determine the approximate length of the production run, in days. About how many runs per year would there be?
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