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How frequently should the production runs be made

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Reference no: EM131149094

A company consumes 12000 units of a particular item. The company has a production capacity of 60 units/day. The cost of each unit produced by the company is Rs.8. The setup and tooling up cost is Rs.96 per setup. The carrying charges are 15 % of cost per unit.

Determine;

a) Economic quantity to be manufactured in each batch

b) How frequently should the production runs be made.

c) Determine the production period.

Reference no: EM131149094

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