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Find the most economic batch quantity of a product

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Reference no: EM131344733

Find the most economic batch quantity of a product on a machine if the production rate of that item on the machine is 200 pieces per day and the demand is uniform at the rate of 100 pieces per day.

The ordering cost is Rs. 200 per batch and the cost of holding one item in inventory is Rs.0.81 per day. How will the batch quantity vary if the production rate is infinite?

Reference no: EM131344733

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