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A toy manufacturer produces an annual total of 50,000 toys at a constant daily rate during its 250 working days per year. One of the component parts is produced at a rate of 500 per day. One component is required for each toy. Setup costs for producing the component parts are $25, and the inventory costs for the component are considered to $1 per part per year.
Calculate the economic lot size of the component part?
Calculate the POQ using daily periods for the component part?
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