What is the optimal production run size

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Reference no: EM1386313

A company can produce 100 home computers per day.The setup cost for a production run is $1,000. The cost of holding a computer in inventory for one year is $300.Customers demand 2,000 home computers per month(assume that 1 month = 30 days and 360 days = 1 year). What is the optimal production run size? How many production runs must be made each year?

Reference no: EM1386313

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