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How frequently should production run be made

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Reference no: EM131344734

A contractor has to supply 10,000 bearings per day to an automobile manufacturer. He finds that, when he starts a production run, he can produce 25,000 bearings per day.

The cost of holding a bearing in stock for one year is Rs.2 and the set-up cost of a production run is Rs.1,800. How frequently should production run be made?

Reference no: EM131344734

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