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Derive the formula of economic production quantity
Assumptions of EPQ are similar to EOQ except orders are received incrementally during production
Q* = sqrt(2DS/ H)*sqrt[P/(P-u)]
Q= production quantity in units
H= Holding cost per unit per unit of time
D= demand, usually in units per unit of time
S= production set- up cost
P= production or delivery rate
u= usage rate
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