Manufactures custom brake disks

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A machine shop manufactures custom brake disks for high performance cars. The shop needs to meet a demand of 2000 units per year. For each production run there is a setup cost of 1800 dollars, and there is a cost of 50 dollars per unit for materials and supplies. Storage of unsold units costs the shop 16 dollars per year. How many units should the shop produce on each production run in order to minimize inventory costs (setup plus storage)? Round your answer to the nearest integer.

Reference no: EM131166384

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