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Hat is the optimum number of units per order

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Bernard Callebaut makes peanut clusters. Their forecast for demand is 4,000 units per year, with an average daily demand of 20 units. The production process is most efficient when 60 units per day are produced. The setup cost is $15, and the holding cost is $0.25 per unit per year. What is the optimum number of units per order?

Reference no: EM13657512

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