If production begins when the inventory level is at zero

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With an annual demand of 2,400 units, daily demand of 10 units, and daily production rate of 40 units, a company has determined that each production run will be for 200 units. If production starts when the inventory level is at zero, how many units would actually be in the warehouse at the end of the first day of production? (Round answer to nearest unit)

  1. 12
  2. 20
  3. 30
  4. 40
  5. none of the above

Reference no: EM13460849

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