Determine fog and eoq

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Question: Annual demand for a certain part = 10,000 units. At present, the setup time on the machine tool that makes this part = 5.0 hr. Cost of downtime on this machine = $200/hr. Annual holding cost per part = $1.50. Determine:

(a) FOG and

(b) total inventory costs for these data. Also, determine.

(c) EOQ and

(d) total inventory costs if the changeover time could be reduced to 6 mm.

Reference no: EM131454069

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